Investor Presentaiton
RI PI+ Sales Tax Repeal Results
Under the Sales Tax Repeal and State Spending Reduction
simulation, the decrease in state government spending:
- ↓ demand for goods and services and labor by government
(direct effect)
- ↓ demand for goods and services and labor by suppliers of
goods and services and labor to government (indirect
effect)
- ↓ demand for goods and services and labor by suppliers of
goods and services and labor to the suppliers of goods and
services and labor to government (induced effect)
Part of the rebound in the economy by Year 5 is the result
of increased government spending as other revenue
sources increase with increased economic activity
September 23, 2014
2014 Revenue Estimation and Tax Research Conference
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