Overview Of JCT Methodology For Analyzing The Macroeconomic Effects Of Proposed Changes In Tax Law

On December 5, 2024, the Brookings Institution hosted a “Tax Modeling Seminar.”  The staff of the Joint Committee on Taxation (“Joint Committee staff”) presented an overview of its methodology for analyzing the macroeconomic effects of proposed changes in tax policy.  The Joint Committee staff’s methodology employs three different macroeconomic models.  The presentation at the Brookings Institution described the three models,  provided an example of extending certain provisions of Public Law 115-97 that are scheduled to expire after 2025, and outlined modeling improvements made by the Joint Committee staff to each of the three models subsequent to estimates made in 2017 using earlier versions of these models.  The Joint Committee staff makes available here the printed materials made available at the Brookings Institution seminar.