Posted by Daniel J. Mitchell on August 30, 2010
By Daniel J. Mitchell
In the private sector, no business owner would be dumb enough to assume that higher prices automatically translate into proportionately higher revenues. If McDonald’s boosted hamburger prices by 30 percent, for instance, the experts at the company would fully expect that sales would decline. Depending on the magnitude of the drop, total revenue might still [...]
Categories: Politics, Tax and Budget Policy |
Tags: Bulgaria, Dynamic Scoring, Government and Politics, International Economics and Development, laffer curve, Romania, Smuggling, Static Scoring, Supply-side economics, taxation | 
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Posted by Daniel J. Mitchell on August 22, 2010
I hope the title of this post is an exaggeration, but it’s certainly a logical conclusion based on what is written in the Congressional Budget Office’s updated Economic and Budget Outlook. The Capitol Hill bureaucracy basically has a deficit-über-alles view of fiscal policy. CBO’s long-run perspective, as shown by this excerpt, is that deficits reduce [...]
Categories: Politics, Tax and Budget Policy |
Tags: big government, cbo, congressional budget office, debt, Deficits, Dynamic Scoring, economics, fiscal policy, Government and Politics, government spending, higher taxes, Static Scoring, Supply-side economics, tax increases, taxation | No Comments »
Posted by Daniel J. Mitchell on August 18, 2010
There’s been a bit of chatter in the blogosphere about a recent post on Ezra Klein’s blog, featuring estimates from various economists about the revenue-maximizing tax rate. It won’t come as a surprise that people on the right tended to give lower estimates and folks on the left had higher guesses. Donald Luskin of National [...]
Categories: Politics, Tax and Budget Policy |
Tags: Art Laffer, Dynamic Scoring, Ezra Klein, General, Government and Politics, incentives, JCT, Joint Committee on Taxation, laffer curve, Static Scoring, Supply-side economics, taxation | No Comments »
Posted by Daniel J. Mitchell on August 1, 2010
By Daniel J. Mitchell
Like the swallows returning to Capistrano, the Congressional Budget Office follows a predictable pattern of endorsing policies that result in bigger government. During the debate about the so-called stimulus, for instance, CBO said more spending and higher deficits would be good for the economy. It then followed up that analysis by claiming that the faux [...]
Categories: Politics, Tax and Budget Policy |
Tags: cbo, congressional budget office, Dynamic Scoring, fiscal policy, Government and Politics, JCT, Joint Committee on Taxation, Keynesian economics, Obamacare, stimulus | No Comments »
Posted by Daniel J. Mitchell on July 21, 2010
By Daniel J. Mitchell
The Wall Street Journal has an excellent editorial this morning on the obscure — but critically important — issue of measuring what happens to tax revenue in response to changes in tax policy. This is sometimes known as the dynamic scoring versus static scoring debate and sometimes referred to as the Laffer Curve controversy.
The key thing to understand [...]
Categories: Politics, Tax and Budget Policy |
Tags: Art Laffer, Double Taxation, Dynamic Scoring, Government and Politics, incentives, Income tax, JCT, Joint Committee on Taxation, laffer curve, marginal tax rates, Revenue Estimates, Static Scoring, Supply-side economics, tax rates, taxation | No Comments »
