Originally posted by John McClellan et. al. on July 25, 2023.
As part of the legislative process, the Congressional Budget Office* supplies the Congress with cost estimates for legislation, economic and budget projections, and other economic assessments. Information from the research community is an important element of CBO’s analyses. This is the seventh in a series of blog posts discussing research that would enhance the quality of the information that CBO uses in its work. (Earlier posts in the series discussed the need for new research in the areas of energy and the environment, finance, health, labor, macroeconomics, and national security.) Please send comments to email@example.com. Since this CBO blog post is believed to contain information of general interest it is being reproduced here, in full, as an information service.
CBO regularly provides the Congress with information about the ways that the government’s tax and transfer system affects the distribution of household income (for example, CBO 2022). That analysis is built on the models and data underlying the agency’s baseline projections of revenues and spending (CBO 2023). CBO is on the lookout for new research that would enhance its analysis of taxes and transfers, including research related to distributional analysis and projections of revenues from business income. The agency is currently working on those topics, and there are significant gaps in the relevant research literature.