1. what does REMI say? sm Tax PI

2. what does REMI say? sm Shortfalls in the U.S.

3. what does REMI say? sm Economic-Fiscal Dilemma States are in a dual crisis – Economic – Fiscal Fiscal crisis solution options – Raise taxes – Cut government spending Economic crisis problems – Fiscal solution options harm economy

4. what does REMI say? sm Tax PI Features Dynamic Responses – Behavioral Responses – Year-by-year effects Detailed Sectors Variables specific to tax changes

5. what does REMI say? sm Model Overview

6. what does REMI say? sm Model Integration

7. what does REMI say? sm Elasticities for US in 2008 StateState elasticity AL1.2443 AK0 AZ1.4991 AR1.5058 CA1.6521 CO1.3698 CT1.2775 DE1.5025 DC1.4839 FL0 GA1.4051 HI1.4529 ID1.6702 IL1.1532 IN1.1013 IA1.4035 KS1.5819 KY1.3761 LA1.4309 ME1.6232 MD1.4135 MA1.1656 MI1.3765 MN1.6445 MS1.6154 MO1.5346 StateState Elasticity MO1.5346 MT1.6178 NE1.6947 NV0 NH1.178 NJ1.4531 NM1.6722 NY1.501 NC1.4082 ND1.6205 OH1.3688 OK1.5738 OR1.3922 PA1.0624 RI1.5554 SC1.6465 SD0 TN1.0982 TX0 UT1.4699 VT1.8783 VA1.3433 WA0 WV1.4944 WI1.6513 WY0 US1.4491

8. what does REMI say? sm Tax PI Model Linkages

9. what does REMI say? sm Distinguishing Model Features Incorporates transparent and robust economic linkages built on proven methods and theory Each model is custom built to match regional client specificity Measures economic impacts and responsive demographic and economic changes over time Model incorporates four unique quantitative methodologies IntegratedDynamic StructuralCustomized

10. what does REMI say? sm Importing Tax Data

11. what does REMI say? sm Tax Inputs and Variables

12. what does REMI say? sm Policy Variables

13. what does REMI say? sm Representative Clients Our Taxation-Focused Client Base Includes: Ernst & Young Iowa Department of Revenue & Finance Iowa Legislative Fiscal Bureau Massachusetts Department of Revenue Rhode Island Department of Revenue Texas Comptroller of Public Accounts Texas Legislative Budget Board Utah Governors Office of Planning & Budget

14. what does REMI say? sm Contact Us Headquarters: 433 West Street, Suite 4 Amherst, MA 01002 TEL: 413.549.1169 FAX: 413.549.1038 District Office: 700 12 th St. NW, Suite 700 Washington, DC 20005 TEL: 202.904.2490 www.remi.com info@remi.com