Current Policy Baseline

1. What is the main difference between a static score and a micro-dynamic score?

Your response should be in no more than three sentences.

2. What is the main difference between a macro-dynamic score and a micro-dynamic score?

Your response should be in no more than three sentences.

Use the following information to answer the next two questions.

sales tax rate
2018	2019	2020	2021
current law	5%	10%	10%	10%
current policy	5%	5%	5%	5%
proposal	7%	7%	7%	7%

total consumption

$100

$100

$100

$100

3. What is the static score of the proposal using a current law baseline? Please express your answer in whole numbers and express the answer with a negative where appropriate. For example, (10% minus 15%) multiplied by 100 would equal -5. Your computation should begin with the proposal first.

Static Tax Estimate (Score)

Current law

4. What is the static score of the proposal using a current policy baseline? Please express your answer in whole numbers and express the answer with a negative where appropriate. For example, (10% minus 15%) multiplied by 100 would equal -5. Your computation should begin with the proposal first.

Static Tax Estimate (Score)

current law

Suppose a taxpayer has total gross income of $100, deduction of $15, and faces a marginal tax rate of 20%. Use this info to answer the next three questions.

5. What is the taxpayer’s tax liability? Your response should be in dollars using the dollar sign ($).