Articles > Word of the Week

Browse our investment glossary and get clear on key 1031 exchange, tax, financial, and investment-related terms.

What is Dynamic Scoring? [Definition]

Dynamic Scoring 
Proposed legislation that would impact revenue or spending must be analyzed and assigned a score that distills its fiscal impact into a single number. Some scoring methods attempt to forecast how the behavior of individuals within the economy will change after the legislation is passed, and then incorporate the economic impact of those changes into the final score. These methods are typically described as "dynamic scoring" methods, even though standard "static" scoring methods typically include some dynamic elements and/or are provided in conjunction with similar forecasts. Dynamic scoring tends to produce results in favor of more conservative policies that recommend cutting taxes, and so are often favored by conservatives, while critics often argue that dynamic scoring methods are too simplistic, subjective, and optimistic to be relied upon for policy-making.

[Click here for more investing terms.]

Access 1031 Exchange PropertyName *PhoneEmailRoleGoalEquity