Investor Presentaiton
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ORA Modeling of Sales Tax Repeal
ORA modeled the $904.3 million in lost revenue from the sales tax
repeal as follows:
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Demand for goods and services: $379.2 million ↓
Local government wages and salaries: $285.5 million ↓
State government wages and salaries: $174.1 million ↓
Grants to nonprofits serving households: $12.3 million ↓
Investment: $0.4 million ↓
Savings on state payroll costs: $52.8 million ↑
Due to the savings on state payroll costs, ORA only modeled $851.5
million in reduced spending by state government in Year 1
The sales tax revenue repeal does cause other revenues to increase
as economic activity increases. Thus, in Year 2, state government
spending is reduced by $798.5 million. Similarly, for Year 3 it is
reduced by $744.1 million, for Year 4 it is reduced by $688.4 million
and for Year 5 it is reduced by $632.6 million
September 23, 2014
2014 Revenue Estimation and Tax Research Conference
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