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1 Scott Hodge, Dynamic Scoring Made Simple 1 (2015)

handle is hein.taxfoundation/dynscsim0001 and id is 1 raw text is: TAXS FOUNDATION Dynamic Scoring Made Simple FISCAL FACT By Scott Hodge Feb. 2015 President No. 451 Key Findings Dynamic scoring is a tool to give members of Congress the information they need to evaluate the tradeoffs in tax policy changes. Dynamic scoring provides an estimate of the effect of tax changes on jobs, wages, investment, federal revenue, and the overall size of the economy. Using dynamic scoring, policymakers can differentiate between policies that look similar using conventional scoring methods, but have vastly different effects on economic growth under dynamic scoring. For example-using Tax Foundation's Taxes and Growth model-we find that five tax change with the same static revenue cost can have vastly different effects on GDP, investment, jobs, and federal revenue-ranging from virtually no change in GDP to an increase of over 5 percent. The use of dynamic scoring is crucial to ensure that comprehensive tax reform grows the economy and meets revenue expectations.