Indirect business taxes

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Gary Taylor

• January 20, 2015 20:19

I have an issue withhow to interpret the indirect business tax numbers when some of them are negative. For example, how can the direct is negative and the indirect and induced be positive? How do I reconcile these results with those from earlier versions of the software?

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  IMPLAN Support

  • January 22, 2015 15:20

  Hi Gary, Thank you for your post! Would you mind providing us with additional information about your study, which sector you are impacting and your study region. Thanks!

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  Gary Taylor

  • January 22, 2015 15:34

  I am looking at the cattle ranching and farming sector in the entire state of South Dakota. I have negative direct, indirect, and induced impacts for indirect business taxes for the cattle ranching and farming sector along with negative indirect and induced effects in oilseed farming, grain farming, vegetable and melon farming, fruit farming, tree nut farminig, greenhouse, nursery, and floriculture, all other crop farming, dairy cattle and milk production, poultry and egg production, animal production, monetary authorities, nondepository credit intermediation, and other state and local government enterprises.

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  IMPLAN Support

  • January 26, 2015 21:33

  Thank you for the additional information! Our initial thought is that the negative impacts you are seeing is due to subsidization. As this sector is paying less in taxes than what the government is providing, resulting in a net negative value. So that we can further look into this issue, can you tell us what data year you are working in. If it is 2013 would you be able to please send in your model to: info@implan.com Thanks!

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  IMPLAN Support

  • January 28, 2015 21:45

  Hi Gary, Subsidies is the reason for the negative values in IBT. South Dakota Agriculture had especially large subsidies in the underlying 2012 IMPLAN data. I hope that this helps. Thanks!

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