Murray Tax Plan Would Generate Only 57 Percent of Assumed Tax Revenue
Created on March 19, 2013
CHANGE IN FEDERAL REVENUE DUE TO MURRAY TAX PLAN, IN BILLIONS
Senator Patty Murray’s budget proposal assumes that federal revenue from taxes will increase by $155 billion each year for 10 years. However, when accounting for the dynamic effects of increased taxes on the economy, the annual average would be closer to $88 billion.
Dynamic modeling: $88 billion annual average
Murray budget assumption: $155 billion annual average
Source: Heritage Foundation calculations using data from the IHS Global Insight 2013 March Short-Term U.S. Macroeconomic Model.