Impact of increased revenues for a casino
I'm trying to model the impact of increases in revenues for a local casino. The casino pays a relatively high tax rate (about 13%) to the local government. When I run the scenario with the expected increase in revenues as an industry change, the results don't show any impact on local government employment even though there would be a substantial increase in local government revenue. Is there a better way to model this, for example by separating the increase in revenue for the casino into two components, one for the revenue that the casino gets to keep (as an institutional change) and one for the revenue that is passed through to the city (as an institutional spending pattern change for the local government non education sector)?
I tried doing the latter, and the results look reasonable, but the total size of the direct effects is too small (i.e. doesn't show the entire effect).
Thanks
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Hello Matt, In IMPLAN, taxes resulting from an industry change are collected and shown in the Tax Impact table on the Results screen. These taxes are considered a leakage and are not spent; therefore, you will not see an impact resulting from the spending of these taxes. Taxes resulting from an impact are handled this way because predicting how taxes will be spent is problematic. 1. There is no guarantee that taxes collected are spent in the same year. 2. There is no guarantee that taxes are spent in the same region (depending on the study region selected) 3. There is no way to know exactly how the revenue will be spent -government operations, investments, construction, etc. If you are fine with accepting the above limitations and want to see the impact of both the increased casino revenue and the taxes produced by the increased revenue, you can impact the casino sector for the increased revenue as an industry change, calculate your local tax, and then utilize the institutional spending pattern for local government at the calculated local tax. The combination of these to activities will equal the collected impact. This article may be of use. http://support.implan.com/index.php?option=com_content&view=article&id=481 Regards, IMPLAN Staff
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