Free Republic

BackgroundWhy do I care about Dynamic Scoring? If you pay taxes and care about long term economic growth, you should become familiar with the concept of Dynamic Scoring. Today, Congress projects funding increases from a tax rate change without regard to impacts on incentives and economic behavior. The costs associated with lost incentives can be 17% of lifetime consumption as will be seen in the social security case study. The process of static scoring opaquely measures the impact of tax rate changes. While Static versus Dynamic Scoring may sound arcane at first, they boil down to accurately and transparently measuring...