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Originally Posted by Guest
the charts represent general examples which often do not translate into actual tax consequences for individuals.
also the CBO notorious for being wrong with their predictions.
Also a number of senators are demanding "triggers' be added to the tax bill so that if prediction prove wrong and the tax cuts re-configured. This is not a good idea because corporation look for certainty when planning and to say 5 years down the road corporate taxes are going back up won't wash
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The National Tax Journal in 1988 concluded that short-run projections from the CBO do not contain bias. A 2000 report comparing the forecasting of the CBO and the Federal Reserve Board concluded that, "The most accurate forecasting is done by the CBO, with the Fed a close second." On average, between 1982 and 2014, the CBO overestimated two-year revenue forecasts by 1.1 percent and six-year projections by about 5.3 percent.*politifact*
What has been its track record?
Although there’s no comprehensive measure on the hundreds of cost estimates on bills it does every year, the CBO’s analyses and forecasting are regarded as good or better than others doing similar work.
It’s true that on economic forecasting, the CBO in recent years has been overly optimistic about growth while underestimating the rate of job creation, but so was almost every other private forecaster. And economists say that the CBO’s economic projections generally compare favorably against other outfits, and its long-term budget estimates have been fairly accurate.
“While no individual or organization can perfectly predict the future, the CBO has a long history of providing credible and impartial estimates based on the center of a range of likely outcomes,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “CBO is our nation’s fiscal referee and should be respected even if you do not like the call.”*LATIMES*