Progressives, Tax Scoring, and Economic Growth

In a related post, I wrote about dynamic scoring being preferred to static scoring and about the “wisdom” of revenue neutrality for tax reform.  In the same cited Wall Street Journal op-ed, Senate Budget Committee Chairwoman Patty Murray (D, WA) is quoted as decrying dynamic scoring on the grounds that it

relies on judgment calls.

She’s right, of course.  What she carefully ignores, though, is that static scoring relies on its own judgment call: that humans don’t respond to the taxing, or spending, or borrowing moves of government.

We’ve seen the “accuracy” of the government’s calls based on those static analyses.  Static analyses completely blew those 2006-2007 cap gains predictions.  Static analysis completely blew the cost predictions of Obamacare.  Static analysis is completely blowing the cost predictions of Dodd-Frank.  And that’s just from the present and immediately prior administrations.

It’s time for Murray and her…cronies…to get out of the way.

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