Assessing the Impact of Five Taxes

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Transcript Assessing the Impact of Five Taxes

PI+ Demonstration: Evaluating Tax
and Government Assistance
Presented By Chris Brown
Assistant Economist, REMI
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Partial List of Users who
Evaluate Tax
Texas Comptroller
New York City Independent Budget Office
Missouri State Auditor’s Office
New Mexico Legislature
Ohio’s Governor’s Office
Utah's Governor’s Office
Massachusetts Department of Finance
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Stimulus Package
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Balanced Budget Dilemma
• States facing large budget shortfalls due to
an unprecedented economic downturn
• Tax increases reduce attractiveness of the
state to businesses and individuals
• Reducing government weakens the economy
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Model Flexibility
Over 6,000 different policy variables
Seventy-Nine Consumption Categories
Allows for understanding of how policy
works in alternate realities
Allows analyst to view multiple tables,
graphs and charts
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Dynamic Properties
Model how a tax policy can generate long-term
sustainable growth
Model Tax Policy that sunsets over a set period of
Understanding the ripple and feed back effects of
tax policy through different region
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Structured Analysis
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Tax Scenario
• Tax
– Sales Tax
• Consumer Price variable
– Income Tax
• Personal Taxes
*Tax variables require a change in the revenue generated or
lost from a policy change
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Government Spending
• Government Spending
– Government sponsored program will reduce
electricity prices
• Electricity (Industrial Sector) Fuel Costs
• Electricity (Commercial Sector) Fuel Costs
– Offset program with government spending
decrease and compare results
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Model Demonstration
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• Can see relationships between direct, indirect and
overall impact of policy change
Dynamic Analysis
• Component of time allows for clear picture of how
policy will play out in future
Model Flexibility
• Can model complex policies and gives analyst the
ability to evaluate specific areas they are
interested in
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