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Dynamic Revenue Estimating: A Brief Overview (CRS Report for Congress)

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Release Date Jan. 6, 2005
Report Number RS22020
Report Type Report
Authors Jane G. Gravelle, Government and Finance Division
Source Agency Congressional Research Service
Summary:

Dynamic revenue estimating taking into account macroeconomic feedback effects from the economy was initiated in the 108th Congress, with the first analysis of the feedback effect provided during consideration of the 2003 tax cut. The effects varied in magnitude and direction, depending on the model used, and have not yet been incorporated into official estimates. To do so would be difficult given the lack of consensus about model and behavioral specifications; at present any analysis is provided to supplement official estimates.