The Washington State Joint Legislative Audit Review Committee (JLARC) incorporated the REMI Tax-PI model into their preliminary report in order to estimate the economic impacts for one tax preference review from a previously published report. The Tax-PI model accounts for direct, indirect, and induced effects as they spread through the state’s economy, allowing for users to simulate the full impact of tax policy change over time. JLARC staff members analyzed the employment impacts associated with Washington’s sales and use tax deferral for investment projects in high unemployment counties and community empowerment zones. To perform this analysis, researchers utilized a two-step method to modeling the employment impacts of the state’s tax preference and modeled three scenarios that display the range of potential employment effects that would result from the tax policy change.
