The State Tax Analysis Modeling Program (STAMP) has been a high priority for GRIH. Fourteen states and NYC are using STAMP. This computer program will provide the ability to perform tax policy “simulations” an analysis of how hypothetical tax changes will affect the state economy.

State tax policy gives rise to a wide range of issues involving the proper role and scope of government. The complexity of these issues can produce bewildering claims and counterclaims about the economic effects of tax policy changes.

The Beacon Hill Institute, Boston, Massachusetts has developed a computer program which can be specifically designed for Hawaii which will provide unbiased models to answer such questions as:

* How will a change in the top state personal income tax rate affect employment in the state?
* How will it affect employment in the construction sector? In the tourist sector?
* How will a change in the corporate tax rate affect capital spending in retail trade? In transportation?

The effort to advance the STAMP program has taken another step forward. A mainland foundation awarded a grant of $15,000 to GRIH at their October 23, 2004, Board of Directors Meeting. These funds were designated to support the Hawaii STAMP Program.

To accomplish the model for Hawaii will take about $35,000. With this donation we are closer than ever to reaching our goal. GRIH has allocated $5,000 so we now need another $15,000 to reach our goal and begin implementation of STAMP for Hawaii. To contribute towards full implementation of this project that will be so helpful to Hawaii call or fax Dick Rowland at (808) 591-9193.

This web site gives a detailed explanation of the Texas STAMP with a break down of many of the economic categories and some of the mathematics behind the modeling software. Not for the faint of heart!

The Beacon Hill Institute has an overall explanation on their web site on how the STAMP program functions, which states currently have the program and how the program reveals the consequences of tax policy upon local economies. 

New Mexico has had STAMP program in operation for several years. See how the program has helped them measure the effects of tax changes.