Friday, August 24, 2012

Why The Ryan Budget Balanced: Dynamic Modeling

The Congressional Budget Office, by law, must only consider static calculations when marking up budget proposals. By this logic, a tax decrease means revenues fall (in contrast to twice in recent history when revenues ROSE huge when taxes FELL huge). Static calculations also say that when taxes are increased revenues to the government will increase. Funny then, how in Spain when they raised taxes and expected 4.3% increases, revenue just fell by 3.5%.

Really, the international left should do something about this pesky reality mucking up the numbers.

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