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Practical Aspects of Dynamic Revenue Estimation

The supply-side framework outlined in this paper does not include all the effects of taxation that economists would like to examine. Depending on one's perspective, the glass could be considered half-full as well as half-empty. But if the only "dynamic" thing the Joint Committee on Taxation did was to incorporate the detrimental effects of federal deficits on capital formation, this would be more than worth the effort. ....

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A Closer Look at Revenue Estimating

It is important to demystify the revenue-estimating process: theoperational system of revenue-estimating bodies, the real-worldpractical system, and the institutional practices that shape theprocess. With a behind-the-scenes understanding, participants inthe debate can understand the forces that mold therevenue-estimating environment on Capitol Hill and then, armed witha clearer understanding of the environment, recommend warrantedimprovements. ....

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