Tax on Production and Imports


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    IMPLAN Support
    Hi. I apologize for the delay of our response. Thank you for your close attention to this data point. Our primary source for TOPI by industry by state is the Bureau of Economic Analysis (, Regional Economic Accounts. For the United States, it appears that TOPI generally is around 10% of Value-Added for the food services and drinking places industry, but for New Hampshire, BEA estimates a TOPI share of Value-Added around one-half of that for the United States, i.e. around 5%. Accordingly, our estimates are largely consistent with the BEA's estimates (we make several adjustments for other region- and industry-specific data). One possible explanation for the difference between the reported TOPI share of VA and the expected TOPI share of VA based on the tax rate is the composition of the sector. The BEA sector and the corresponding IMPLAN sector 413 both include caterers and other food service providers that likely are taxed at different rates from bars and restaurants, which would reduce TOPI from the nominal tax rate levied on several businesses in the industry. Nevertheless, we also find it surprising that the BEA estimates TOPI for food services and drinking places for New Hampshire are such a disproportionately small share of VA, given the tax rate, and are following up with the BEA and looking into other data sources. In the meantime, you can customize your study area data to make TOPI consistent with your expectations. Note that the VA coefficient for the industry is the share of VA accounted for by TOPI, not the share of output. Please let us know if you have questions about how to customize study area data. Thanks!
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