A presentation by Congressional Budget Office (CBO) analysts Rebecca Heller, Shannon Mok, and James Pearce, and Census Bureau research economist Jonathan Rothbaum at the American Economic Association Annual Meeting, Committee on Economic Statistics on January 5, 2024. According to the CBO, the purpose of this presentation is to summarize preliminary work conducted by CBO and the Census Bureau as part of CBO’s ongoing efforts to increase its capacity to analyze budgetary and economic outcomes for various demographic groups.
INTRODUCTION TO PRESENTATION:
Internal Revenue Service (IRS) data provide high-quality measures of income and are useful for studying how the tax system affects households. But those
data lack information about the race and ethnicity of individuals.
Researchers have used survey data, which include self-reported race and
ethnicity data, to study how the tax system differentially affects households by race and ethnicity (Goldin and Michelmore 2022; Holtzblatt et al. 2023).
Research has also shown that many surveys face reporting issues that can make drawing inferences difficult (Meyer et al. 2022).
Researchers and policymakers have criticized the lack of data (Brown 2021), and there have been new efforts to analyze the issue using administrative tax data
(Fisher 2023; Cronin et al. 2023).
This presentation summarizes preliminary work by CBO and the Census Bureau
as part of CBO’s ongoing efforts to increase its capacity to analyze budgetary
and economic outcomes for various demographic groups (CBO 2022).
Established in 1974, The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government. It is charged with providing members of Congress objective analysis of budgeting and economic issues to support the congressional budget process. Each year, CBO economists and budget analysts produce dozens of reports and hundreds of cost estimates for proposed legislation.