Technocracy at Bay: No Longer Fresh at Project Syndicate

Should-Read: Yes, Topher Spiro has gone over the edge into shrillness. He is, however, right: The Tax Foundation is not doing "dynamic scores" of anything. They may build a model of the interaction of taxes, government financial flows, international considerations, and economic growth to do them in the future. They do not have one now. John Harwood and company should not be citing them in the same breath as TPC, PWM, CBO, and JCT: Topher Spiro: @topherspiro on Twitter: "John Harwood...

...but there are dynamic scores from Tax Foundation, Tax Policy Center, and Penn-Wharton. none of them show economy reaching sustainable 3% growth that WH has touted

@crampell: CBO: it's not "practicable" for JCT to come up with a dynamic score of tax bill before filing of Senate Finance Committee report, given compressed time frame

Please, please do not cite Tax Foundation in the same breath.

The CRFB is, for once, playing a positive role in adding light to this debate with a well-drawn graph:


This shows how much of an outlier the Tax Foundation "estimate" is. And this shows why: the Tax Foundation ignores the drag on private investment produced as private businesses find themselves facing increased competition as the Treasury borrows money to finance the larger deficits that would otherwise have flowed into private investment. The Tax Foundation's excuse, which is the same as that of the Nine Unprofessional Republican Economists, is that there is no significant drag on growth from financing larger deficits because "the United States operates in an international capital market". I tell this to international economists at Berkeley and elsewhere. And they laugh. That's not how things work in a world not of perfect but of imperfect capital mobility in which the U.S. is not a small open but a very large semi-open economy.