Introduction and Mission Statement

The Economics of STAMP

How STAMP works

The CGE Team


States that have applied STAMP

What the press is saying about STAMP


Persons interested in acquiring a STAMP for their state should contact:

Dr. David G. Tuerck, Executive Director
Beacon Hill Institute, Suffolk University
8 Ashburton Place
Boston, MA 02108
Phone: 617-573-8750
Fax: 617-994-4279

To obtain a PDF version of the BHI STAMP brochure click here.


STAMP Endorsements

From the Heritage Foundation...
From the Pacific Research Institute...
From the Commonwealth Foundation...
From the
Thomas Jefferson Institute for Public Policy...
From the
Buckeye Institute...
From the
Mackinac Center for Public Policy...

From the Heritage Foundation...


September 21, 2001

TO: David Tuerck
FR: Bill Beach, Director, Center for Data Analysis, Heritage Foundation
CC: Bridgett Wagner
RE: Importance of the STAMP models

I recently re-read your fine report on proposed “reforms” to health care coverage in Maryland. That report reminded me of the many times that I have wanted to write and tell you about the increasingly central role that STAMP models are playing in public policy debate. You should know that the effects of your work can be seen in a number of states, and that BHI's influence on public policy is steadily increasing.

I'm particularly impressed by how various think tanks have used your model. Pacific Research Institute's analysis of how taxing commerce on the internet might affect the California economy has been duplicated by other think tanks that own your model. I suspect that the tax analysis of the Buckeye Institute in Ohio and the spending analysis of the Commonwealth Foundation in Pennsylvania also will resonate in similar studies conducted by the increasing number of state organizations that own the STAMP model.

I must say, however, that the work you did for the Maryland Foundation for Research and Economic Education (“Maryland FREE”) on health care reform best exemplifies the enormous effect that your work can have. The small but dedicated band of reformers in Maryland FREE stood virtually no chance of commanding public attention against the well-financed, media savvy Maryland Citizens' Health Initiative and allied groups. Instead, your report devastated the claims of the MCHI and allowed Maryland FREE to mount an aggressive media campaign. Maryland FREE stood toe-to-toe against MCHI in the Washington Post, the Baltimore Sun, the Montgomery Gazette, and the Washington Times. That lineup spells impact in any Washingtonian's lexicon.August 28, 2001

From the Manhattan Institute...

September 24, 2001

Mr. David G. Tuerck
Executive Director
Beacon Hill Institute
8 Ashburton Place

Boston, MA 02108

Dear David:

I just wanted to thank you for the econometric model you created for us to evaluate the relationship between taxes and the economy. Its debut was a tremendous success. Mayor Giuliani embraced our analysis and helped us to bring tax policy into the middle of the mayoral campaign.

The model is a tremendous tool for helping to leverage our influence on public policy. I'm convinced it would be an invaluable tool for other think tanks as well. We appreciate your involvement and look forward to working with you again.


Larry Mone
Manhattan Institute for Policy Research

From the Pacific Research Institute...

Ms. Bridgett Wagner
Director, Coalition Relations
The Heritage Foundation

214 Massachusetts Ave., N.E.
Washington, D.C. 20002-4999

Dear Bridgett:

I am very pleased to provide you with some examples of the success that the Pacific Research Institute has been able to enjoy as a result of having the Cal-STAMP model of the California economy. PRI is now in its second year of using the model and it has proved to be a very valuable tool for our important work in the state in the area of taxation.

For example, in 2000, Assemblywoman Carol Migden (D-San Francisco) introduced a bill that would have resulted in further taxation of the internet in California. Based on the research results coming from the Cal-STAMP model showing significant job loss in the state if the tax were implemented, Governor Gray Davis vetoed the legislation. This study's findings, based on the model, received prominent media coverage throughout the state, including the front page of the Business Section of the San Francisco Examiner.

In June of this year, PRI published its bi-annual California Legislators' Guide 2001. This guide has proved to be extremely popular with members of both sides of the legislature. The 2001 edition contained two chapters on Taxation and Budget. Based on the results from the model, author Erik Bauman was able to make clear recommendations for legislators on promoting the fiscal health of California. The launch took place at a barbecue luncheon on the grounds of the State Capitol. It was very well attended by legislators and their staffers. A lively question and answer period ensued.

In July, when Republicans in the California legislature dug their heels in for a protracted budget fight, they relied on PRI data to bring their anti-tax message home. The standoff was over an automatic quarter-cent reduction in the state sales tax that was triggered when the California budget surplus was booming. When the Governor started using up the surplus faster than anticipated, the Democrats wanted to reinstate the tax.

Relying on data from one of the chapters in the California Legislators' Guide 2001 cited above, Republicans were able to show that the sales tax could cost California over 150,000 jobs by 2004. Assembly Leader Dave Cox and Assembleymen Strickland and Runner all cited data on the Assembly floor and in op-eds throughout the budget battle. The impasse finally ended in a partial victory for the Republicans and Californians—the final budget passed changes the formula by which the tax will be triggered.

Dr. Lawrence McQuillan, Director of PRI's Center for Entrepreneurship, and Mr. Chris Middleton who has responsibility for the model, will be visiting state legislators this Fall to further demonstrate the capabilities of the model. Included in their presentations to legislators will be the impact of tax changes on the budget and employment.

These are just a few examples of the exciting work and impact that the Pacific Research Institute has been able to have using the Cal-STAMP model developed by David Tuerck and his staff at the Beacon Hill Institute in Massachusetts.


Sally C. Pipes
President & CEO
Pacific Research Institute


From the Commonwealth Foundation...

August 31, 2001

David Tuerck
Beacon Hill Institute
8 Ashburton Place
Boston, Massachusetts 02108-2770

Dear David:

I write to thank you and your staff for the outstanding work you have done in providing us with the STAMP tax model for Pennsylvania. It has been an invaluable tool for us and, in just the past few months, we have employed it successfully in a key fight to prevent a tax increase.

As you know, some legislators in Pennsylvania are fighting mightily to include our state in the group seeking to expand sales taxes to all Internet and other remote purchases. While we were readily able to show the static effect that the proposal would have on taxpayers and consumers in Pennsylvania, we looked to the STAMP model to help us show the dynamic effect of this tax increase on jobs and our economy. With your help, we were able to show legislators and other policy-makers that Pennsylvania would forfeit more than 90,000 jobs going forward if the Internet sales tax plan became reality.

You will be quite pleased to know that the tax advocates, at their request, were provided with our study and the STAMP users' manual the Beacon Hill produced. They, I assume, thought that they would be able to tear the model apart and show the state the error of our ways. They have said not one substantive word critical of the model, which tells me that your work has withstood the most hostile and biased scrutiny. This is a strong testament to the thoroughness and the care of Beacon Hill's product.

We will be using the STAMP model in the weeks ahead to show Pennsylvania policy makers how a dramatic reduction in business taxes can boost our state's anemic job-creation record, and we have had interest from key leaders from around the state in how the model can help them shape their own policy proposals.

All in all, adding the STAMP model to The Commonwealth Foundation's research tools has been an important and extremely helpful development for us this year. We look forward to even greater impact in the months ahead.

Please count me among your most grateful admirers.

Very truly yours,

Sean Duffy

From the Thomas Jefferson Institute for Public Policy...

From: Mike Thompson
Sent: Tuesday, September 25, 2001 10:25 PM

To: 'Wagner, Bridgett'
Subject: RE: STAMP model

The Beacon Hill Institute provided the Thomas Jefferson Institute a wonderful STAMP model that has enabled us to bring important employment consequences of higher taxes to key legislators and business leaders. This model is the only thing of its type in Virginia that is available to our state legislators. Working with David Tuerck and his quality staff, we put together a team of leading Virginia economists who oversaw the development of this model and thus its impact has been greater than might have otherwise been the case.

Mike Thompson
Thomas Jefferson Institute

From the Buckeye Institute...

October 10, 2001

David G. Tuerck, Ph.D.
Executive Director
Beacon Hill Institute
Suffolk University
8 Ashburton Place

Boston, MA 02108-2270

Dear David:

This letter is to update you on the effect our report “Tax Reform for the New Millennium” is having on the debate here in Ohio.

The report led to positive editorials and op-eds in the Cincinnati Enquirer, Willoughby News Herald, and various business journals, and to radio and television news stories in Columbus. The study was excerpted in the Ohio Chamber of Commerce's magazine Ohio Matters.

More importantly, the report has been used by several legislators, including Senator Jim Jordan who has introduced a proposal for a 10% across the board income tax cut.

You provided an invaluable service through your STAMP model by reliably estimating revenue loss and job creation for each of our income tax cut proposals. Now, when discussions of income tax cuts are held at the Statehouse, legislators refer to our report to examine the likely impact of various proposals on the state budget and job creation.

Thank you for your assistance in preparing and releasing “Tax Reform for Ohio's New Millennium.” As always, please contact me if you need anything from me and please feel free to list me as a reference for the benefits that your STAMP model can provide to important state-based tax research.


David J. Owsiany, J.D.

Buckeye Institute

From the Mackinac Center for Public Policy...

October 22, 2001

Dr. David G. Tuerck
Executive Director
The Beacon Hill Institute for Public Policy Research
Suffolk University
8 Ashburton Place

Boston, MA 02108-2770

Dear Dave:

I wanted to drop you this note to tell you how extremely valuable the State Tax Analysis Modeling Program (STAMP) is that you folks at Beacon Hill developed, and to thank you for conceiving and implementing it, and working with state-based groups like mine to put it to good use. Lansing is full of talk these days about the alleged "need" to slow down or cancel already-passed and scheduled reductions in the state's personal income tax and Single Business Tax (SBT). A slowing in state revenues, mirroring the economy as a whole, prompts such talk. Our view at the Mackinac Center is that state government ought to discipline itself, reprioritize its spending, and keep scheduled tax cuts in place if it really aims to stimulate a soft economy. Using your STAMP model confirmed that if the scheduled cuts were to be canceled, the result would be fewer jobs and a less healthy economy-a fact that revenue analysts should take into account mightily in their deliberations.

Two weeks ago, a group of prominent state senators in Michigan, as well as the Michigan Chamber of Commerce, approached us with a request for our participation in crafting both an economic stimulus package and a reasoned defense of tax cuts. We put the STAMP model to work and it worked beautifully. At both a Lansing news conference with senators and representatives, and at testimony I gave before both House and Senate committees, the STAMP model and its findings were given a prominent hearing. When we had questions during the process, your people were responsive and helpful.

Many thanks to you and to the great team you have assembled at Beacon Hill for this very valuable work!


Lawrence W. Reed

Mackinac Center for Public Policy