Hello, I have a few questions about state and local tax impacts. I am running an analysis by parts for an industry that is not included within IMPLAN for about 15 different states. I modified an industry spending pattern of an existing similar industry and imported the corresponding excel sheet for each state. I run the industry spending pattern change with a labor income change as discussed in the IMPLAN ABP articles. I then will be adding in my direct effects that I have determined for the industry. My question is concerning the tax impacts and specifically Taxes on Production and Imports. Are there any additional steps to be taken in calculating the impacts on taxes? I am coming up with some very large negative numbers for the total state and local taxes, with the culprit being TOPI. In particular South Dakota appears to be giving some large negative impacts, but virtually every state I run is coming up negative total impacts. Additional information: I am running this analysis for a downstream sector of the Agriculture sector, so a large share of the indirect impacts are going into the production farming industry codes which if I remember correctly can impact this. I understand that negative TOPI is possible due to subsidies, but these impacts are substantial, and I would have thought to expect that more at the federal level as opposed to the state and local level. Any comments, guidance, or links to further resources would be much appreciated!
Please sign in to leave a comment.