A pending rule change in the House of Representatives will require the Joint Committee on Taxation and the Congressional Budget Office to incorporate macroeconomic effects into official price-tags on certain pieces of major legislation. This remains controversial. It’s also hard to do well. The Urban-Brookings Tax Policy Center and the Hutchins Center on Fiscal and Monetary Policy at Brookings take a close look at how dynamic scoring is done, the models that JCT and CBO use for macroeconomic analysis of tax bills and other major legislation (immigration, Affordable Care Act, infrastructure), and how to communicate this analysis accurately.
|“Macroeconomic Analysis at the Joint Committee on Taxation and the Mechanics of Its Implementation” »