Columbus, OH – On Thursday, The Buckeye Institute’s Economic Research Center (ERC) released two timely reports on Wyoming’s fiscal and economic problems—Review of Wyoming’s Fiscal Health and Fiscal Policy, Theory, and Measurement: The State of Wyoming—as demonstrated by a sophisticated new dynamic model it created of Wyoming’s economy.

These comprehensive economic studies were conducted in partnership with Wyoming Liberty Group in Cheyenne, Wyoming. Economists at The Buckeye Institute’s ERC analyzed both the challenges and several potential policy solutions for Wyoming’s state budget woes. With its unique custom economic models that employ top-of-the-line dynamic analysis, ERC economists were able to predict how changes in various proposed tax policies will alternately create additional, or threaten existing, jobs in Wyoming.

The ERC’s model unfortunately reveals that the fiscal problems Wyoming faces may be even worse than anticipated. Excluding transfers from state savings, Wyoming revenue collections have fallen ten percent per person over the last decade in real dollars. The reports praise Wyoming’s sensible tax policy that taxes consumption more than personal income or investment. The reports’ modeled policy scenarios included increases or decreases to the franchise tax, sales tax, severance tax, and an increase in exports. The economists also included a creation of a personal income tax, with the assumption that Wyoming’s constitution changed to allow such a tax. The model showed that an effective increase in the sales tax of .5 percent (through removing exemptions) would result in the loss of nearly 1,000 jobs and a reduction of $15 million to the state economy over the next two years.

# # #