Modeling changes in tax collection

Hi Alex. One way to model a reduction in tax collection is as a decrease in general government activity. After creating a model with multipliers, Under Setup Activities>Activity Options>Import>Institution Spending Pattern choose, for example, State/Local Govt NonEduction. The imported spending pattern will sum to $1. You should set the Event Year before entering your Event Value in the model. With spending patterns, to enter your Event Value (the amount of the reduction in tax receipts), you would need to navigate to Edit Activity>Activity Level and set the level to the amount of the reduction in tax receipts (as a negative value), then run the scenario to create impact results. When you get your results, you will want to view them in the same year (Dollar Year for View) as your Event Year. If your Direct Output value does not equal the initial value entered in the model, you should look in the left panel of the screen to get the remaining values. There may be values in the “Direct Institution Change” field and the “LPP Imports” field of your results. If there are values in these cells, then you will want to add them to the value shown in the “Direct Output” cell of your Summary Results to get your initial Event Value. We hope this helps.