Monday, August 14, 2006
We previously have blogged A Dynamic Analysis of Permanent Extension of the President’s Tax Relief by the Treasury Department's Office of Tax Analysis. In response, the Congressional Research Service has released Comments on the Treasury Dynamic Analysis of Extending the Tax Cuts:
This memorandum responds to your request for a discussion of the dynamic model used by the Treasury Department to analyze the extension of the 2001 tax cuts. The memorandum also compares this modeling exercise with a previous one by Treasury analysts estimating the effects of the tax reform proposals made by the President’s Advisory Panel on Federal Tax Reform. A more detailed discussion of the models and modeling issues can be found CRS Report RL33545, The Advisory Panel’s Tax Reform Proposals.