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Diane Publishing Books
How the Congressional Budget Office (CBO) Projects Income
Charles Whalen (au); Alexander Arnon (au)
Projections of income earned by individuals and businesses are an integral part of the Congressional Budget Office劌製 (CBO劌製) regular 10-year projections of the economy and a key component of its projections of federal revenues and outlays. CBO projects all the major income measures that are presented in the Commerce Dept.劌製 national income and product accounts (NIPAs). The total of those measures is gross national income (GNI), which can be broken down into gross domestic income (GDI) and net income from the rest of the world. Three broad categories of income are central to CBO劌製 projections: (1) income earned by labor in the production of goods and services in the U.S.; (2) income earned by the owners of capital in the production of goods and services in the U.S.; and (3) net income from the rest of the world. Those income categories are driven by different fundamental forces and are taxed differently and therefore affect revenues and spending in different ways. CBO劌製 methods for projecting income also differ between the near term and medium term. Figures and tables. This is a print on demand report.
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