The rules change promises to make it somewhat easier for Republicans to advance legislation such as an overhaul of the loophole-ridden tax code, since the positive economic effects of such legislation would generate greater tax revenue. That means lawmakers would have to come up with less in offsetting revenues to make up for bold cuts in income tax rates.
The House adopted the rule changes on a nearly party-line vote on Tuesday.
Republicans call it "macroeconomic scoring." The rule would direct congressional scorekeepers to incorporate the macroeconomic effects of major legislation into their official cost estimates.
Democrats say the shift to dynamic scorekeeping will drive up the deficit.
"The bottom line is that this is a way to try to fast-track tax cuts for millionaires and make it look like there are not large costs," said Rep. Chris Van Hollen of Maryland, the top Democrat on the Budget Committee.
The rules change comes as Republicans appear likely to replace Congressional Budget Office Director Doug Elmendorf, a Democratic appointee, whose term expired last week. Democrats fear that a new GOP appointee to run the agency would be more likely to take liberties with the new scorekeeping mandate to help drive the GOP agenda. There are several competing models for evaluating the economic effects of legislation and estimates can vary widely….
The new scoring approach would only be required for major legislation in which the budgetary effects of legislation — meaning an increase or decrease in revenue, spending or deficits — are at least 0.25 percent of the size of the economy. Had the rule been in effect last year, the threshold would have been $43 billion. ….
Read more by clicking on the following: Scorekeeping change may help GOP pass tax reform - Yahoo News
Also see this piece on Scoring in Canada’s Parliament : http://boonecountywatchdog.blogspot.com/2015/01/who-right-on-dynamic-scoring-ask-canada.html
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