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PWBM-TM Output

The combination of the individual, corporate and international simulators produce the static revenue and outlay effects that would result from a change in either the macroeconomy as forecasted by the PWBMsim or the tax code. These changes are described in the distributional analysis of the changes, the change in marginal and average tax rates and the change in corporate ETRs. The results are also used to construct tax functions that are used as an input to PWBM’s dynamic model. These tax functions describe the tax rates faced by both labor and capital income. The results of PWBM-TM are useful for any discussion of policies that affect the tax code. This usefulness is evident in the distributional display and data visualization. However, policy analysis that does not consider how proposed policy changes affect both the macroeconomy and feed back into the federal budget is incomplete.