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
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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
www.recovery.gov
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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
time
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
Scenario
• 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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Conclusion
Structure
• 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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