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Basic interpretation question

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bartonkn
Hi- I have gone through the forum, glossary, etc. and am still not sure about one aspect of interpreting the results. Are the tax impact results (state/local and federal) included in the Total Output and Total Value Added? From reading the forum it seems that the tax impacts are included in Total Output, is that correct? It would make sense to me then that only State/Local Tax amount would be included in the Total Value Added amount as the Federal Tax amount would be "leakage" out of the study area, is that correct? Or do both Total Output and Value Added amounts account for "leakage"? Thank you.
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    IMPLAN Support
    Hi Kelli, Taxes are included in both the Value Added and the Output numbers because: Output = Intermediate Expenditures + Value Added where: Value Added = Labor Income + Other Property Type Income + Taxes on Production & Imports. So both include State & Local Government and Federal tax payments in their totals. However, this does not mean that these values are contributing to local spending. The standard Multiplier build in IMPLAN does not spend tax dollars but rather treats them as leakages, with assumption that if you know where and how they are spent, you can certainly Model additional impact Scenarios to capture these impacts. Please let us know if you have any additional questions.
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