Dynamic Scoring

: The catch Experts say some of the changes could dramatically explode the deficit, according to MSNBC. The conservative Tax Foundation estimated its price at a whopping $3.66 trillion over 10 years using traditional scoring methods and $1.6 trillion using dynamic scoring, which assumes conservative arguments that the cuts will unleash a surge of economic growth are correct. The proposal includes something for everyone: new tax breaks for the rich, even bigger ones for corporations, a gentle poke at Wall Street and a variety of new goodies for middle-class and low-income taxpayers. The gains would also be concentrated among the wealthy elite – the static score found that the richest 1% of Americans would enjoy an 11.6% gain in after-tax income, the richest 10% would get a 4.7% boost, and the bottom 80% would see a more modest bump between 1% and 3%. The top line numbers are largely in line with an analysis by economists John Cogan, Martin Feldstein, Glenn Hubbard and Kevin Warsh distributed by the Bush campaign that pegged its cost at $3.4 trillion under static scoring and $1.2 trillion under their dynamic model. Under Bush proposal, the current tax system for individuals would be collapsed into just three brackets: 10%, 25% and 28%. The current code, after a tax hike on the wealthy under President Obama, consists of seven brackets with a top rate of 39.6%. The corporate tax rate would be dramatically lowered from 35% to 20% and allow companies to deduct capital investments. A number of independent groups are currently working on estimates of their own. (news.financializer.com). As reported in the news.