Chye-Ching Huang: @dashching on Twitter: Problems with Tax Foundation model
Must-Read: @dashching seems like an unhappy camper today—unhappy with the Tax Foundation setting forth a model that (a) they know is inaccurate even on their own methodologies, and (b) based on a methodology—that the medium-run drag on growth from a larger deficit does not exist—that I do not believe can be defended in a professional manner:
Chye-Ching Huang: @dashching on Twitter: “A Tax Foundation dynamic score that no-one should pay any attention to an indication of what this bill would do for growth…
…Two major problems:
- Unlike mainstream models, the Tax Foundation’s ignores deficits. Would be very strange for lawmakers concerned about deficits to rely on a model that ignores them https://t.co/CUBxnAop6e.
- Further, @gregleiserson has identified two major additional conceptual errors with the model https://t.co/IHv2iIYeoP, that don’t seem fully resolved. These are not errors modeling specific proposals, but affect the model’s results, every time it runs…