Impact analysis - changes in household income


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    IMPLAN Support
    Hello, Regarding the first question: Yes – you will want to enter the change in income as the Event value, as opposed to the entire household income. Regarding the second question, this depends on the Activity Type you have chosen to model the income change. There are three options for modeling household income 1. Labor Income Change Activity 2. Household Income Change Activity 3. Household Spending Pattern With a Labor Income Change Activity, the software removes payroll taxes, social insurance taxes, commuters, personal taxes, and savings according to the rates reflected in the SAM for your region. The Household Income Change option is useful for when the income comes from some other non-labor source. With a Household Income Change, the software will not remove payroll taxes, social insurance taxes, or commuter spending, but will still remove personal taxes and savings. With these first two options, the spending is said to be "induced" by the new income and all the effects are considered to be Induced. With a household spending pattern, all of the specified amount is spent (i.e., none goes to savings, payroll taxes, or personal taxes). This option is often used for tourism studies since the spending pattern is treated as a final demand and the results show direct, indirect, and induced effects. This last option is not found under the New Activity button but rather under Activity Options > Institution Spending Pattern. You will then need to select the representative household income category. Regarding the last questions: Our data will reflect such changes if those changes appear in the underlying raw data. However, when running a Scenario in IMPLAN, the software does not assume any additional changes to these transfer rates. In other words, if you are modeling an income boost to these household groups, IMPLAN will not then assume that those households now pay a higher tax rate. If you want to incorporate that, you can either reduce by that percentage your Activity Level or run a second, negative impact to account for the increased tax payments. All Institutional transfers are captured in the social accounting matrix (SAM) on the basis of available data. If you go to Explore > Social Accounts > IxC Social Accounting Matrix tab, you can see transfer payments to governments from Households (government column x Household row) and Households to governments (Household Income Group column x government row). If you export the detailed SAM (Export > Industry Detail SAM Files (CSV only) > Industry Detail, Row Detail, you will be able to see these payments broken out by type. However, the “Income Tax” type is not broken down into any additional detail. The TIPA of 2014 was signed into law in December 2014. Most of the 2014 raw data are released the following summer or fall, and thus should reflect the provisions of the bill. You may find the attached tax impact report document helpful. Please see[url=] this webpage[/url] for more information regarding our data sources and processes. Best regards, IMPLAN Group Staff
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