Posted on 02/12/2016 12:35:18 PM PST by Citizen Zed
The headline you'll read is that the Rubio plan cuts taxes by $6.8 trillion over a decade. This needs to be put in the context of the $42 trillion of revenue the federal government is projected to collect over the next ten years.
So it's a big score, but it's not so big when compared to the larger tax revenue picture. Rarely are these two numbers associated, as they always should be. Needless to say, they are not in the TPC report.
TPC themselves admit that they lack the capacity to do a macroeconomic analysis of the plan. In other words, $6.8 trillion is the static score. Factoring in macroeconomic effects is quickly becoming a best practice in tax scoring. It's been done for years by the conservative Tax Foundation and others, and has even become a standard tool used by Congress's own official Joint Tax Committee (JCT). The fact that TPC does not incorporate a reality based score makes the $6.8 trillion number pretty much worthless. They need to update their model to catch up with the rest of the scoring world.
This is especially true given that TPC themselves conclude that Rubio's plan would boost incentives to work, save and invest. The report also points out that Rubio's plan would reduce the marginal effective tax rate on new investment to 0% or so across the board, down radically from the high rate, picking-winners-and-losers system we have today. That's bound to have a very large macroeconomic effect.
Even if TPC is not capable of producing a modern scoring model to analyze the Rubio plan, they can at least acknowledge that others like JCT and the Congressional Budget Office (CBO) have and are constantly refining those models. TPC does not do so.
(Excerpt) Read more at forbes.com ...
Soon to be unemployed Rubio can dream all he wants.
Forbes a div of GOPe
Americans For Tax Reform's Policy Director Calls Tea Party 'Freaking Retarded'
Talking Points Memo
October 24, 2013Americans For Tax Reform Tax Policy Director Ryan Ellis said on Wednesday night that he's starting to think tea party activists are "freaking retarded."
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