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October 26, 2011

Perry Tax Plan: Revenue and GDP Impact

Still looking good for Gov. Perry. The numbers are out on his tax plan.

Using static analysis, the Perry Plan would raise $23.8 trillion from 2014-2020, or $4.7 trillion less than the CBO baseline of $28.5 trillion over that span. Using dynamic analysis that assumes growth effects from the redesigned tax code, the Perry Plan would raise $26.8 trillion, or $1.7 trillion less than CBO baseline.

Keep in mind the CBO baseline includes on-time expiration of the Bush tax cuts, which I doubt is actually going to happen.

I was more impressed by the GDP projection. Under Perry's plan, the economy would be $3.5 trillion bigger than under the CBO's estimate of current growth.

digg this
posted by Gabriel Malor at 07:29 AM

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