REMI Report Presents Just Half the Equation

The Ohio Department of Development claims a new study by Regional Economic Models Inc. (REMI) proves that the Governor Taft’s tax reform plan will unleash the state’s economic potential. However, the study fails to establish that the plan will significantly boost Ohio’s economy. Most importantly, it analyzed the effect of tax cuts on the economy without the spending cuts, or alternative tax increases, that will have to accompany them for the state to maintain a balanced budget. This brief, issued in May 2005, examines the REMI report.