WashingtonWatch.com delivers the numbers behind proposed legislation and regulation. It is important to understand where these numbers come from and what they mean.
WashingtonWatch.com starts with government predictions about the costs or savings from proposed changes to government spending, taxation, and regulation. We take these predictions and calculate their “net present value.” That is the value today of changes to future spending, taxes, or regulation.
Then, we divide that “net present value” calculation by the total number of people in the United States. The resulting figures convey the significance to average Americans — in dollars and cents — of proposed changes to the nation's policies.
WashingtonWatch.com takes the perspective of individual citizens: An increased tax is treated as a “cost” because it takes money from people and businesses. Government spending also “costs” money because it moves money out of the public treasury we all own. “Savings” occur when spending cuts keep money in the public treasury and tax cuts return money to the public.