Questions on “Generation and Interpretation of IMPLAN’s Tax Impact Report”: Under “Example Analysis” (page 5): 1. You state that adding 10 jobs to sector 371 yielded a total of $1.05 million in regional Value Added activity (not shown/discussed elsewhere). You then state that by looking at Figure 1 that sector 371 generates an additional $87,598 of tax revenue to state and local governments from all sources and an additional $166,416 to the federal government a. I see where the totals come from in Figure 1. However, since Value Added also includes Indirect Business Taxes (one component of the taxes in Figure 1), aren’t the totals you state already included in the $1.05 million so they are not IN ADDITION TO the $1.05 million as you state? Furthermore, since Value Added includes Labor Income (employee compensation and proprietor income), which constitutes gross payments, isn’t part of the Labor Income going to pay taxes included in Figure 1? In fact, you go on to say in the next paragraph that ‘employee compensation turns over $2,293 to state/local government and $79,851 to Federal government. I think your language is misleading. b. The ratios you discuss in the next paragraph are taken from Table 3 (ok), but how they are calculated within the parentheses are incorrect. The denominator in both cases should be $725,837 (not $79,851)
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