Taxes on production and imports (TPI) consist of tax liabilities, such as general sales and property taxes, that are chargeable to business expense in the calculation of profit-type incomes. Special assessments are also included. TPI is comprised of state and local taxes—primarily non-personal property taxes, licenses, and sales and gross receipts taxes—and Federal excise taxes on goods and services.
For example, if I want to see the tax implications of adding or removing 50 manufacturing jobs in Denver, TPI will measure the change in local, state, and federal tax revenue through the increased or decreased industry sales, specifically general sales and property taxes. It’s important to note that this change in tax revenue corresponds to the ripple effects and cannot be tied to a particular timeframe.
Source: Emsi’s model, incorporating data from the Bureau of Economic Analysis (BEA).