An Excellent Reason To Have Dynamic Scoring Of Budgets

Greg Ip has a good piece in the WSJ on the subject of the dynamic scoring of budget proposals. The opposition to this idea tends to come from the idea that it will all get very political. And I have to admit, I’m pretty cool with the idea that the political discussion of budget proposals might become political. I’m even willing to assume that they should in fact. However, the particular example that Ip gives of dynamic scoring being used illustrates the desirability of it perfectly:

Indeed, fiscal watchdogs around the world already grapple with these challenges. The Dutch equivalent to the CBO, the CPB Netherlands Bureau for Economic Policy Analysis, evaluated the effect on growth and revenue of a 2001 tax reform that lowered the top income tax rate. Britain’s counterpart, the Office for Budget Responsibility, has incorporated the effects of a lower corporate income tax and higher value-added tax in its forecasts.

It’s difficult to see how that last, from my native UK, could be scored without dynamic scoring.

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