Tax Changes from Expected Utility Costs
I'm working on a project that requires the estimation of the economic impacts of an increase in water utility costs. One idea I had on performing this analysis would be to reduce the overall household income(with some assumption or estimation of the cost breakdown among the income groups) by the cost change for the utility and increase the sales for either 525-local electric utilities or 526-other local government enterprises to balance out the reduced income. Would this be considered an adequate method or is there a more accurate way of showing the impact of tax changes? Thanks, Peter
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