Suppose cutting taxes both reduces the percentage of income that is taxed and increases the size of taxable incomes.Which scoring method takes both effects into account?

Question

Quizplus · Accepted Answer

Dynamic scoring takes into account the behavioral responses of taxpayers to changes in tax policy, including the potential for tax cuts to increase economic growth and taxable incomes. Static scoring, on the other hand, assumes no behavioral response and only looks at the direct revenue effects of tax changes. Capital scoring and cash scoring are not relevant in this context.

Suppose Cutting Taxes Both Reduces the Percentage of Income That