Statement of Ronald A. Pearlman, Chief of Staff, Joint Committee On Taxation : Before the Senate Committee On Finance, One Hundred First Congress, First Session Jcx-3-89
Statement of Ronald A. Pearlman, Chief of Staff, Joint Committee On Taxation : Before the Senate Committee On Finance, One Hundred First Congress, First Session Jcx-3-89
United States. Congress. Joint Committee On Taxation
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It is important to emphasize that neither our revenue estimates nor Treasury estimates are made in a vacuum. Our staff regularly communicates with those of the Treasury Department, the Congressional Budget Office, and the Congressional Research Service, as well as with academic economists and others who are knowledgeable about capital gains and revenue estimating methodology. Ultimately, however, we make an independent judgement of how any tax change will affect the market place. Many times the... Joint Committee estimate and the Treasury -7- estimate are nearly identical. Occasionally we disagree, as we do on the estimate of the Administration's capital gains proposal. However, our disagreement on the estimate is not total. Subject to our constraints to use different baseline assumptions, both the Joint Committee and Treasury estimate the Administration's proposal will result in a "static" revenue loss of $20 to $25 billion dollars per year (i.e., one that disregards the taxpayer response to the tax change) (Table 1, line 1).
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