Businesses have become increasingly likely to choose the organizational structure that offers more favorable tax treatment. As a result, revenues are lower than they would otherwise be, but incentives for investment are probably greater.

    

Businesses have become increasingly likely to choose the organizational structure that offers more favorable tax treatment. As a result, revenues are lower than they would otherwise be, but incentives for investment are probably greater.

    

For the latter half of its 10-year projection period, CBO projects that actual output will grow at the same rate as potential output but fall short of potential output by about half a percent, on average—matching its long-term average gap.