Perry’s fishynomics

“Rick Perry's tax plan projections are based on fishy economics, writes Matt Rognlie: "The Rick Perry presidential campaign has contracted with John Dunham and Associates to run arevenue analysis of Perry’s new tax plan. The impact of the plan depends on your choice of baseline policy: it raises $4.7 trillion less than the CBO baseline for 2014-2020 under conventional, static scoring, and $1.7 trillion less under 'dynamic scoring'. Relative to the CBO’s more arguably realistic alternate baseline, the plan does better. But regardless of your preferred baseline, it’s clear that the plausibility of Dunham’s 'dynamic scoring' model is key: it provides an additional $3 trillion over only 6 years! It’s troubling, then, to learn that the Perry campaign’s idea of 'dynamic scoring' bears absolutely no relation to what most economists mean by the term."”