THE PAST IS PRESIDENT….Have you heard of “dynamic scoring”? It’s a politician’s dream, a theoretical construct that allows you to cut taxes, but then claim that the economic boost from the tax cut is so large that the tax cut won’t actually cost anything!
Dynamic scoring was a hobbyhorse of the Reagan administration, part of the “voodoo economics” that George Bush’s father mocked in 1980. But now it’s back. As the New York Times reports:
For years the supply-side economists have insisted that tax cuts stimulate the economy, producing increased government revenue that partially offsets the original cuts. But to their dismay, their own director of the Congressional Budget Office, Dan L. Crippen, rejected dynamic scoring. His term recently ended, and he was not reappointed. Replacing him is Douglas J. Holtz-Eakin, the top economist at the White House Council of Economic Advisers, who conservatives say is a champion of dynamic scoring. Indeed, the council used dynamic scoring to predict that rather than costing $359 billion over the next five years, Mr. Bush’s tax cut will reduce government revenues by only $166 billion.
Tapped says, “To put it bluntly, ‘dynamic scoring’ gives the GOP further license to lie about their economic policies.”
Of course, Tapped is just one of those tiresome left wing ideologues who can be counted on to carp about Republican tax policies. So instead let’s hear what the White House’s own estimates were ? before they were hastily taken down from their website:
The administration’s estimates show its proposal would boost economic growth by only 0.4% this year, but 1.1% in 2004 [election year!]. The projections suggest the plan could have a contracting effect of half a point or more in 2005.
A contracting effect of half a percent (or more!) in 2005. Isn’t it nice that we have those rock jawed Republicans back in office who disdain flabby short-term Keynesian pandering and instead promote policies for long-term economic health?