Estimate of Administration Proposal for a Reduction in Taxes On Capital Gains of Individuals Jcx-5-90
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As required by statute, the estimate is based on the baseline macroeconomic forecast for the United States economy provided by the Congressional Budget Office (CBO). The CBO baseline forecast extends only through 1995. Any extrapolation of the baseline beyond 1995 either would require a purely mechanical approach (e.g., an assumption that economic trends would continue unchanged in the future) or would involve an independent forecast of such trends. Either approach would be arbitrary and could ...well result in the use of economic assumptions inconsistent with those underlying the CBO five-year forecast. In addition, any baseline assumptions made by the staff would likely create a debate about out-year macroeconomic growth which the staff has traditionally avoided.
Even if these technical problems of assuring consistency were overcome, the uncertainties inherent in long-range macroeconomic forecasting have led the staff to conclude that it would be inappropriate to provide a specific revenue estimate for years beyond 1995.
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To quickly assess the difficulty of the text, read a short excerpt:
As required by statute, the estimate is based on the baseline macroeconomic forecast for the United States economy provided by the Congressional Budget Office (CBO). The CBO baseline forecast extends only through 1995. Any extrapolation of the baseline beyond 1995 either would require a purely mechanical approach (e.g., an assumption that economic trends would continue unchanged in the future) or would involve an independent forecast of such trends. Either approach would be arbitrary and could ...well result in the use of economic assumptions inconsistent with those underlying the CBO five-year forecast. In addition, any baseline assumptions made by the staff would likely create a debate about out-year macroeconomic growth which the staff has traditionally avoided.
Even if these technical problems of assuring consistency were overcome, the uncertainties inherent in long-range macroeconomic forecasting have led the staff to conclude that it would be inappropriate to provide a specific revenue estimate for years beyond 1995.
What to read after Estimate of Administration Proposal for a Reduction in Taxes On Capital Gains of Individuals Jcx-5-90?
You can find similar books in the "Read Also" column, or choose other free books by United States. Congress. Joint Committee On Taxation to read onlineMoreLess
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