International Liberty
Another Victory for Good Fiscal Policy
by Dan Mitchell
March 29, 2013 

Because I’ve been sharing good news recently – which definitely is not my normal style, I joked the other day I must be on coke, in love, or rolling in money. For example: 

The fiscal cliff was a smaller loss than I expected.

The sequester was a real victory. 

We have good evidence that the Tea Party has made a positive difference.

The Democratic-controlled Senate rejected a permanent expansion of funds for the IMF. 

The burden of government fiscal policy has been reduced since the 2010 elections.

Well, the drugs, love, and money must still be in my system because I’m going to share some more good news. Our lords and masters in Washington have taken a small step in the direction of recognizing the Laffer Curve. 

Here are some details from a Politico report. 

Here’s one Republican victory that went virtually unnoticed in the slew of budget votes last week: The Senate told the Congressional Budget Office it should give more credit to the economic power of tax cuts. It won’t have the force of law, but it was a big symbolic win for conservatives — because it gave them badly needed moral support in an ongoing war to get Washington’s establishment number crunchers to take their economic ideas more seriously. The amendment endorsed a model called “dynamic scoring,” which assumes that tax cuts will pay for at least part of their cost by generating more economic activity. The measure by Sen. Rob Portman (R-Ohio) called on CBO and the Joint Committee on Taxation to include “macroeconomic feedback scoring” in all future estimates of tax legislation. …Portman eked out a narrow 51-48 victory in the final series of budget votes that started around 3 a.m. on Saturday… 

Read the rest of the article at International Liberty