| TO: | Honorable Ron Wilson, Chair, House Committee on Ways & Means |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1002 by Thompson (Relating to the repeal of state and local taxes.), As Introduced |
Dynamic Fiscal Note Analysis
Comptroller of Public Accounts
For: HB 1002 by Thompson
Date: March 10, 2003
I. Revenue Impact Analysis, 2004-2008
The bill would repeal all the state and local taxes used in the calculation of revenue feedback, therefore there would be no dynamic revenue feedback effect associated with the bill.
|
Fiscal Year |
Gain/(Loss) to the General Revenue Fund 0001 |
Dynamic Feedback Revenue Effect |
Net Gain/(Loss) to the General Revenue Fund 0001 |
|
2004 |
$0 |
$0 |
$0 |
|
2005 |
0 |
0 |
0 |
|
2006 |
(24,506,493,000) |
0 |
(24,506,493,000) |
|
2007 |
(25,346,312,000) |
0 |
(25,346,312,000) |
|
2008 |
(26,120,999,000) |
0 |
(26,120,999,000) |
II. Economic Impact Analysis, 2004-2008
|
Fiscal Year |
Increase/ (Decrease) in Texas Personal Income |
Increase/ (Decrease) in Texas Investment |
Increase/ (Decrease) in Texas Employment |
|
2004 |
$0 |
$0 |
0 |
|
2005 |
0 |
0 |
0 |
|
2006 |
57,650,000,000 |
64,919,822,000 |
1,279,000 |
|
2007 |
63,980,000,000 |
64,138,818,000 |
1,393,000 |
|
2008 |
74,310,000,000 |
65,960,019,000 |
1,492,000 |
Note: The values in Section II relate to changes in macroeconomic variables relative to the Comptroller's baseline economic forecast for each individual year.
III. Economic Implications after 2008
After ten years, in 2013, this bill could be expected to increase employment by 1,858,000 workers, investment by $69.0 billion, and Texas Personal Income by $118.6 billion.
IV. Methodology
A Texas-specific general equilibrium model was employed in calculating the economic impacts. The model distributes the value that otherwise would have been paid/saved in taxes by businesses and/or consumers among the state's economic sectors. The revenue feedback calculation was based on the historical relationships between state tax revenues and associated economic factors.
| Source Agencies: | 304 Comptroller Of Public Accounts
|
| LBB Staff: | JK, SJS
|