Repeal a Tax to Gain Revenue? [Statistics Strike Again.]

...In scoring the Death Tax Repeal Permanency Act, Entin acknowledges that a static score reveals a substantial loss in tax revenues over ten years. A static score refers to the method in which changes to current law assume the exact same behavior, often ignoring even commonsense changes that would take place as a result of changes in law. If the Act is scored on a static model $460 billion is lost in revenues from 2011-2021. The majority of the report however, demonstrates that if the law were repealed many changes in behavior would take place. By raising wages, capital investment, and increasing revenues from other tax sources, the report outlines how static scoring grossly overestimates losses in revenues. In fact, an alternative score was offered in the report using a dynamic scoring method. This method incorporates the most likely changes in individuals and/or investment behaviors as the result of a change in law.

In the first few years there was still shown to be an overall loss of tax revenues, but in the later years there were large gains in overall revenues. In the end, the dynamic model showed that there would be no revenue lost over ten years as a result of eliminating the death tax, but there would actually be a substantial gain in revenues from other sources. Total there would be about $89 billion gained in revenues from the current law baseline as behavior changed in reaction to passing the Death Tax Repeal Permanency Act. The dynamic scoring model represents an accurate picture of positive overall revenue growth in the next ten years while helping small businesses if the Death Tax Repeal Permanency Act were to be passed.

A person clever at numbers can make tax revenue projections look however it suits their fancy.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at at Digg and at Reddit and in Delicious and Stumbleupon

Screw the models.
Repealing the Death Tax is the moral thing to do.

A Dem will always assume the pie size is fixed - and a Dem has no morals, so the battle lines are drawn.

2 posted on 04/26/2011 9:03:24 AM PDT by grobdriver (Proud Member, Party Of No! No Socialism - No Fascism - Nobama - No Way!)

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