{ "id": "R46233", "type": "CRS Report", "typeId": "R", "number": "R46233", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com", "versions": [ { "summary": null, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R46233", "source_dir": "crsreports.congress.gov", "type": "CRS Report", "formats": [ { "sha1": "7e80fae806527e02581df4be77ec95e622912bba", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R46233/8", "filename": "files/2023-03-06_R46233_7e80fae806527e02581df4be77ec95e622912bba.pdf" }, { "format": "HTML", "filename": "files/2023-03-06_R46233_7e80fae806527e02581df4be77ec95e622912bba.html" } ], "title": "Dynamic Scoring in the Congressional Budget Process", "source": "CRSReports.Congress.gov", "retrieved": "2023-04-07T04:03:35.298209", "date": "2023-03-06", "typeId": "R", "id": "R46233_8_2023-03-06", "active": true }, { "summary": null, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R46233", "source_dir": "crsreports.congress.gov", "type": "CRS Report", "formats": [ { "sha1": "e4da18458aa8d0bad2bc61a563942275ac337dde", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R46233/6", "filename": "files/2022-05-24_R46233_e4da18458aa8d0bad2bc61a563942275ac337dde.pdf" }, { "format": "HTML", "filename": "files/2022-05-24_R46233_e4da18458aa8d0bad2bc61a563942275ac337dde.html" } ], "title": "Dynamic Scoring in the Congressional Budget Process", "source": "CRSReports.Congress.gov", "retrieved": "2023-04-07T04:03:35.296913", "date": "2022-05-24", "typeId": "R", "id": "R46233_6_2022-05-24", "active": true }, { "summary": null, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R46233", "source_dir": "crsreports.congress.gov", "type": "CRS Report", "formats": [ { "sha1": "06d6f835614d753d83034e81276c58788e50ea34", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R46233/4", "filename": "files/2021-08-02_R46233_06d6f835614d753d83034e81276c58788e50ea34.pdf" }, { "format": "HTML", "filename": "files/2021-08-02_R46233_06d6f835614d753d83034e81276c58788e50ea34.html" } ], "title": "Dynamic Scoring in the Congressional Budget Process", "source": "CRSReports.Congress.gov", "retrieved": "2023-04-07T04:03:35.295326", "date": "2021-08-02", "typeId": "R", "id": "R46233_4_2021-08-02", "active": true }, { "source": "EveryCRSReport.com", "id": 617433, "date": "2020-02-18", "retrieved": "2020-02-19T23:05:34.409236", "title": "Dynamic Scoring in the Congressional Budget Process", "summary": "When Congress considers legislation, it takes into account the proposal\u2019s potential budgetary effects. Although this information may come from numerous sources, Congress generally relies on estimates provided by the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) when determining whether legislation complies with congressional budgetary rules.\nGenerally, CBO and JCT estimates include projections of the budgetary effects that would result from proposed policy changes, and incorporate anticipated individual behavioral responses to the policy. The estimates, however, do not typically include the macroeconomic effects of those individual behavioral responses that would alter gross domestic product (GDP). \nIn recent decades, however, Congress has sometimes required that JCT and CBO provide estimates that incorporate such macroeconomic effects (effects on overall economic output\u2014GDP). These estimates are often referred to as dynamic estimates or dynamic scores. \nProponents of dynamic estimates have argued that such estimates provide a more accurate assessment of budgetary impact than conventional scoring, and that they can improve Congress\u2019s ability to compare competing policy proposals. Proponents argue that dynamic estimates are important for the sake of consistency, and that by not including dynamic effects, the legislative process is biased against policy proposals designed to encourage productive economic activity. Opponents of dynamic estimates argue that estimates of macroeconomic feedback effects are too uncertain to be relied upon as accurate projections of budgetary outcomes. Opponents of dynamic estimates have stated that, with assumptions about the behavioral responses that determine macroeconomic feedback being so uncertain, there is consistency in assuming, for all legislative proposals, that GDP remains the same, regardless of changes in tax or spending policy.\nBetween 1997 and 2018, congressional rules existed that required JCT or CBO to provide dynamic estimates under certain circumstances. These congressional rules and requirements varied, sometimes permitting the creation of dynamic estimates, and sometimes requiring it. During this period, some dynamic estimates provided a range of potential budgetary outcomes, while some included a point estimate. During this period, dynamic estimates were used only for informational purposes, as opposed to being used to determine whether Congress was complying with its budgetary rules. In some cases, published estimates showed wide variation in estimated results depending on the model type and assumptions.\nWhile committees and Members continue to have the ability to request that CBO or JCT provide dynamic estimates for certain policies or legislative proposals, for the first time in decades there are no explicit congressional rules or requirements that pertain specifically to the preparation or use of such estimates. If Congress were to reinstitute explicit rules related to dynamic estimates, it may choose to consider many facets of such a potential rule, such as whether a threshold should exist for the creation of such estimates (i.e., should such estimates be provided only for \u201cmajor legislation\u201d); whether dynamic estimates should be provided for spending as well as revenue proposals; what types of information should be included in such estimates; whether dynamic estimates should be used only for informational purposes, or also for enforcement purposes; and whether additional resources ought to be provided to CBO and JCT so that they might develop greater capacity for providing dynamic estimates.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R46233", "sha1": "7a4c5f95d810253992bed03cca5c927643e0c5b1", "filename": "files/20200218_R46233_7a4c5f95d810253992bed03cca5c927643e0c5b1.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R46233", "sha1": "83cabf2a35b2bdc4761508f9d11e3b1ea567dbc8", "filename": "files/20200218_R46233_83cabf2a35b2bdc4761508f9d11e3b1ea567dbc8.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4892, "name": "Fiscal Policy & the Budget" }, { "source": "IBCList", "id": 4900, "name": "Budget & Appropriations Procedure" } ] } ], "topics": [ "Economic Policy", "Legislative Process" ] }