Negative tax impacts in North Dakota

Hi. I'm getting negative tax impacts for an analysis in North Dakota. Digging into it, these are mostly coming from sector 520, other federal government enterprises. In North Dakota, this industry produces retail services, restaurants, and 3520. It also has a $30 negative tax impact for every dollar of output. I think what's happening is that a small share of the retail and restaurant services are getting attributed to sector 520, and this is resulting in a very negative tax impact that swamps the positives from all other sectors. This is obviously not what I want, but do you consider it "correct"? Can you tell me what the basis of the 3000% tax loss for this sector is? Thank you.
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  • Hello Dan, In the raw GDP data we obtained from the BEA, the value for IndCode 83 (Federal Civilian) is -$693,000,000.  This is a 2013 value, so we have to project it based on employment and income, yielding a value of -$672,00,000.  While 3 IMPLAN industries belong to this BEA IndCode (IMPLAN sectors 518, 519, and 520), the latest BEA Benchmark tables show no TOPI in industries 518 or 519; thus, industry 520 gets the entire value.  All this means is that this industry is highly subsidized, which is not surprising for a government enterprise and is reflected at the U.S. level as well. Therefore, we would consider it correct. Regards, IMPLAN Staff

  • Thanks for the reply. I can move forward given this. Just to be clear though, the negative tax impacts are not direct impacts, they're coming through the indirect and induced channels, and my work already is an analysis by parts. The impact on sector 520 is, I think, coming mainly through its provision of retail services. Again, thanks for the reply.

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