what does REMI say? sm PI+ Demonstration: Evaluating Tax and Government Assistance Presented By Chris Brown Assistant Economist, REMI

what does REMI say? sm Partial List of Users who Evaluate Tax Texas Comptroller New York City Independent Budget Office Missouri State Auditors Office New Mexico Legislature Ohios Governors Office Utah's Governors Office Massachusetts Department of Finance

what does REMI say? sm Stimulus Package

what does REMI say? sm Balanced Budget Dilemma States facing large budget shortfalls due to an unprecedented economic downturn Tax increases reduce attractiveness of the state to businesses and individuals Reducing government weakens the economy

what does REMI say? sm Model Flexibility Over 6,000 different policy variables Seventy-Nine Consumption Categories Allows for understanding of how policy works in alternate realities Allows analyst to view multiple tables, graphs and charts

what does REMI say? sm Dynamic Properties Model how a tax policy can generate long-term sustainable growth Model Tax Policy that sunsets over a set period of time Understanding the ripple and feed back effects of tax policy through different region

what does REMI say? sm Structured Analysis

what does REMI say? sm Tax Scenario Tax – Sales Tax Consumer Price variable – Income Tax Personal Taxes *Tax variables require a change in the revenue generated or lost from a policy change

what does REMI say? sm Government Spending Scenario Government Spending – Government sponsored program will reduce electricity prices Electricity (Industrial Sector) Fuel Costs Electricity (Commercial Sector) Fuel Costs – Offset program with government spending decrease and compare results

what does REMI say? sm Model Demonstration

what does REMI say? sm Conclusion Can see relationships between direct, indirect and overall impact of policy change Structure Component of time allows for clear picture of how policy will play out in future Dynamic Analysis Can model complex policies and gives analyst the ability to evaluate specific areas they are interested in Model Flexibility