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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?


To: combjelly who wrote (148977)1/4/2020 8:52:14 PM
From: i-node  Read Replies (1) | Respond to of 354336
 
>>How do you separate out the results of a tax cut from deficit spending when spending doesn't go down with the cut in taxes?

First, deficit spending generally is not stimulative, so it is a fairly easy determination.

But these kinds of analyses are done all the time in the fields of managerial accounting and microeconomics. They will scale easily, and in the federal budget the sheer quantity of data should yield an excellent result.

If, for example, you cut corporate income taxes, over a period of several years you will clearly establish the technical component (e.g., changes in rates and recognition practices deductions, etc.). The dynamic component (changes in tax base due to changes in the economy) would have to be modeled. And you will know the extent of changes in deficit spending and presumably would have excellent regression data to model the effect, if any.

This would the kind of project that could swarm, but it is not like modeling climate change or the economy as a whole. I think it would be fairly straightforward compared with some other kinds of economic analysis.