Investor Presentaiton
Summary
Modeling a tax policy change using REMI PI* requires the
ability to translate aggregate revenue changes into sector
specific impacts
-
REMI PI+ allows the modeler to use a predetermined spreader,
usually based off of output or industry demand but this will
spread impact to all sectors
.
•
As noted earlier, Rhode Island has 64 exemptions from the state sales
and use tax
Manufacturing inputs and equipment are exempt but using the spreader
function may result in an allocation to the manufacturing sector when
none is warranted
The Rhode Island Sales Tax Simulation Model provided a
mapping between the aggregate revenue changes and the
sector specific impacts of a sales tax repeal
September 23, 2014
2014 Revenue Estimation and Tax Research Conference
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