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?
What were the economic effects of the Tax Cuts and Jobs Act? Q.What were the economic effects of the Tax Cuts and Jobs Act? A.Most analysts expected the Tax Cuts and Jobs Act to boost economic output modestly in both the short and the longer run. The evidence supports the prediction for the short run. Because they are confounded by the large and lasting effects of the COVID pandemic and related policies, we will probably never be able to disentangle the long-term effects. However there was little evidence of a strong effect on investment that could lead to higher longer-run growth in the years before the pandemic. Read more about What were the economic effects of the Tax Cuts and Jobs Act?
How should distributional tables be interpreted? Q.How should distributional tables be interpreted? A.Distributional tables provide important and useful information, but may be misinterpreted. Keep six key questions in mind to correctly interpret the results. Read more about How should distributional tables be interpreted?