How do financing methods affect the long-run burdens of tax cuts? Q.How do financing methods affect the long-run burdens of tax cuts? A.Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. But the distributional effect of reduced government services and the debt are excluded from standard distributional tables. Read more about How do financing methods affect the long-run burdens of tax cuts?
What criticisms are levied against standard distributional analysis? Q.What criticisms are levied against standard distributional analysis? A.Economists disagree on which taxes to include, how to measure tax burdens, what to assume about tax incidence, how to measure income, what period of analysis to use, and whether to include outlays in the calculations. Read more about What criticisms are levied against standard distributional analysis?
What are dynamic scoring and dynamic analysis? Q.What are dynamic scoring and dynamic analysis? A.Tax, spending, and regulatory policies can affect incomes, employment, and other broad measures of economic activity. Dynamic analysis accounts for those macroeconomic impacts, while dynamic scoring uses dynamic analysis in estimating the budgetary impact of proposed policy changes. Read more about What are dynamic scoring and dynamic analysis?