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Gaming, States, and Tax Revenues—the Tortoise or the Hare: A CGE Comparative Assessment of Casino Resorts and Games‐Only Casinos
Author(s) -
ÁlvarezMartínez María Teresa,
Lahr Michael L.
Publication year - 2016
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12134
Subject(s) - computable general equilibrium , revenue , tax revenue , economics , state (computer science) , sales tax , public economics , economy , ad valorem tax , microeconomics , tax reform , finance , computer science , algorithm
Abstract Theoretically speaking, heavy tax rates on gambling should dampen growth of the casino revenues. Indeed, a cursory glance at data across U . S . states suggests that more jobs and income are generated directly by the gaming industry when lower tax rates are applied. Using a detailed computable general equilibrium model, we evaluate the effects of a proposed machine‐based casino on N ew J ersey's economy as well as on the state's existing set of casino resorts in A tlantic C ity. We find few winners other than the state's tax coffers.