Skip to content

Taxes and Growth (TAG) Model Overview & Methodology

All Related Articles

Why dynamic scoring still matters dynamic tax modeling and difference between static and dynamic scoring

Three Reasons Why Dynamic Scoring Still Matters

Lawmakers should use the most comprehensive analytical tools available to them—like dynamic scoring—to make informed decisions about policy changes.

5 min read

The Tax Foundation’s Taxes and Growth Model

In an attempt to provide a realistic, data-driven analysis of federal tax policy, the Tax Foundation has developed a General Equilibrium Model to simulate the effects of tax policies on the economy and on government revenues and budgets.

6 min read
Corporate tax incidence, dynamic scoring

Measuring Marginal Tax Rate on Capital Assets

This study demonstrates how Tax Foundation’s TAG model calculates the weighted average METRs for different capital assets in the corporate and noncorporate sectors. The high marginal rates of up to 53 percent in the corporate sector illustrate why there is an urgent need for business tax reform.

12 min read
International Tax Crowding Out

Time to Shoulder Aside “Crowding Out” As an Excuse Not to Do Tax Reform

This paper evaluates the arguments for and against “crowding out” and compares these arguments to empirical studies. It discusses the impact of tax changes on the allocation of national income between consumption and saving, and the allocation of saving between private investment and government deficits. It finds that the crowding out argument is largely based on a mistaken assumption about the flexibility and availability of saving and credit for the financing of government deficits and private investment.

31 min read