Explanation of Margin Tax Revenue Estimates

Revenue estimates for The Education Initiative or “margin tax” have generated significant public interest. The initiative would impose a 2 percent margin tax on businesses with total revenue exceeding $1 million per year. The Guinn Center for Policy Priorities, a bipartisan policy institute that provides independent, fact-based analysis, has estimated the annual revenue impact of the margin tax to be $460 million. As a follow-up to its Fact Sheet on The Education Initiative(Margin Tax), released in February 2014, this Guinn Center policy brief provides a detailed discussion of the assumptions and methodology used to arrive at the revenue estimates of the margin tax.