On what do economists agree and disagree about the effects of taxes on economic growth? Q.On what do economists agree and disagree about the effects of taxes on economic growth? A.Economists generally agree that people and businesses respond to taxes and that large tax changes can move the economy. But economists have not (and probably cannot) pin down exactly how the economy works and how responsive people and businesses are to policy changes. As a result, economists often disagree about what models and parameters to use to analyze tax policies. Those scientific disagreements are sometimes amplified by value judgments about appropriate policy. Read more about On what do economists agree and disagree about the effects of taxes on economic growth?
How might the Tax Cuts and Jobs Act affect economic output? Q.How might the Tax Cuts and Jobs Act affect economic output? A.The Tax Cuts and Jobs Act will likely boost economic output modestly in both the short and the longer run, but not all those gains will flow to the incomes of Americans. Read more about How might the Tax Cuts and Jobs Act affect economic output?
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?
