Since 1984, the national economic consulting (NEC) group at PricewaterhouseCoopers LLP (PwC) has provided a broad range of economic, statistical, and modeling services. These services include revenue and budget analyses of legislative proposals; regulatory and impact studies; survey research studies; and comparative tax burden studies.
In addition, our health policy economics (HPE) group focuses on applying economic and statistical analysis to a broad range of health policy issues, including budget estimates of federal health programs; employer and insurer impact analyses; and pharmaceutical industry analyses.
Our clients include corporations, trade associations, coalitions, government agencies, law firms and nonprofits. NEC is an integral part of the Washington national tax services (WNTS) office, the firm's policy analysis and advocacy organization.
Peter Merrill, former chief economist of the Congressional Joint Committee on Taxation, leads this group of multi-disciplined, economists. Our economists have served on the staffs of the Joint Committee on Taxation, the Congressional Budget Office, the Department of the Treasury and the IRS.
We analyze the impacts of private sector decisions on the economy, as well as the effects of government decisions on the private sector. For companies, we estimate the contributions of their operations to the regional economy. For trade associations, we quantify the industry-wide impacts of government mandates, such as environmental regulations. For associations and coalitions, we project the effects of tax and spending proposals on economic indicators, such as employment, investment, and exports, by industry and geography.
Who's interested in impact studies?
Companies, trade organizations, public relations groups, law firms, charitable organizations, government agencies, and other types of clients use our studies to convey the economic importance of their activities. They also use them to suggest by how much their contributions would be increased or decreased as a result of changes in public policies.
How we seek to add value through impact studies
We have completed several studies measuring the impact of energy generation and transportation projects on the local economy, in terms of jobs, incomes and tax collections. These reports were used to inform local residents and government regulators of the economic impact of the facilities.
We estimated the value of US exports originating in each Congressional district plus the number of export-associated jobs in the district. A coalition of manufacturers used the study to communicate the local importance of exporting to members of Congress.
We quantified the importance of the mutual fund industry to Missouri’s economy. The study was useful in analyzing proposed revisions to Missouri’s allocation and apportionment rules and predicting their impacts on economic activity and tax revenues in Missouri.
We developed the methodology to predict how charitable giving — the number of givers and the amounts given — is affected by federal tax rules. Tax-exempt groups with philanthropic interests have used our models to estimate changes in charitable giving if tax deductions of especially generous givers were not limited or if individuals who do not itemize deductions could nevertheless get a tax benefit from their contributions.
We analyzed the profitability and market value of service suppliers whose revenues include reimbursements from Medicare. An association of such suppliers used our analysis in its contention that statutory cuts in Medicare reimbursements had greatly weakened their economic condition.
We quantified the importance of a financial services company and its subsidiaries for the Florida economy. The company wished to convey these points to state government officials.
We surveyed manufacturers to compile a database regarding the use of metal fasteners in automobiles and other products. A coalition of manufacturers used our analysis of these data to contend that the expected benefits of new federal regulations regarding quality control were incommensurate with their costs.
We estimated the costs and savings to the federal government of switching from a dollar bill to a dollar coin. A manufacturer used this study in preparing its testimony to Congress and otherwise publicizing its position on the proposal.
We conducted a confidential survey to recompute the economic impact of the mineral wool draft P-MACT on the rock and slag industry. As a result of our study, the EPA modified the Clean Air Act regulation to reduce the economic burden on the industry.
We focus on locating the data you need, drawing on our team’s experience using a wide range of public and proprietary databases and our experience working with large computer files. We also have experience designing and assisting with the implementation of company surveys for associations and coalitions, maintaining professional standards of confidentiality and increasing compliance with anti-trust regulations. In addition, we help clients implement proprietary benchmarking studies to enable comparison of their performance to that of their peers. Clients use our analyses to make informed strategy decisions, to educate various audiences, and to achieve legislative goals.
Who's interested in survey and data analysis?
Companies, trade associations, public relations groups, law firms, charitable organizations, government agencies, and other types of clients use our survey and data analyses to make sound decisions, educate others, and seek legislative goals. Our professionals are experienced in working with publicly available data from governmental and private sources. When the appropriate data are not available, we design and collect customized survey data.
How we seek to add value with survey and data analysis
We annually conduct a survey of weather risk management contracts, which companies use to hedge against adverse weather risks. The survey is used to track developments in the industry including the total number of contracts traded and value of the contracts.
We analyzed nearly every US airline ticket issued in a particular interval. The analysis was used by a coalition of air carriers that wished to participate in the legislative consideration of proposals for restructuring airline excise taxes.
We estimated the number and residences of people who were not going to be counted in the 2000 census, and we estimated the consequent effects on the distribution of federal formula grants. A government oversight body used our data analysis to launch an education campaign designed to increase public participation in the census.
We surveyed companies to compile a database of truck prices. A coalition of truck leasing companies used the results to argue that the depreciation period for trucks for income tax purposes should not be lengthened.
We found through data analysis that only a small proportion of increased student aid tends to be reflected in higher tuition charged by academic institutions. A client interested in higher education used the study while supporting tax provisions that are favorable to scholarships, interest deductions on student loans, and savings to pay for higher education.
We have developed proprietary tools (e.g., TaxCompare®) to facilitate comparison of tax burdens between state and local jurisdictions as well as internationally. Clients use our studies to evaluate the relative competitiveness of a particular jurisdiction's tax structure.
Who's interested in comparative tax studies?
Companies, trade associations, public relations groups, law firms, charitable organizations, government agencies, and other types of clients use our studies to support legislative objectives and make decisions about organizational policy, operation, and location. Policymakers use our studies to evaluate and reshape proposals for tax and regulatory changes.
How we seek to add value with comparative tax studies
We calculated and compared the effective tax rates on paper manufacturing, forestry, and timbering in the United States and in several different countries that compete with the United States in these lines of business. A trade organization used our study to argue that US taxes are uncompetitively high.
We compiled a database of tax burdens that senior citizens could expect to face in different US cities. A company whose business depends on the locational choices of senior citizens used our study to inform their clients about comparative tax burdens.
We built a computerized model for calculating Social Security benefits, similar to models used by the Social Security Administration. A nonprofit organization used the model for fast-turnaround analyses of proposals to restructure Social Security and for educating policymakers on implications for program beneficiaries.
We compared taxes related to headquarters operations of a company that might have located in one of many jurisdictions. An economic development authority used the study in determining whether to offer additional incentives for keeping the company in its current location.
We compared state and local taxes on high-tech individuals and businesses in various jurisdictions that are thought to compete for their residency. A state economic development authority used the study in determining the competitiveness of the state’s tax structure.
We compared income taxes currently paid by companies with an estimate of taxes they would pay if the United States replaced its income taxes with a national sales tax or a flat tax. Companies and trade associations used the analysis to assess their opportunities and vulnerabilities under alternative tax structures.
Our health policy economics (HPE) group focuses on applying economic and statistical analysis to a broad range of health policy issues. Clients use our research to support changes in health-related legislation, to evaluate the cost to the government and companies of various prescription drug or patients' rights proposals, and to educate stakeholders on the implications of proposed legislative actions.
How we seek to add value through health policy economics
We estimated the payments to HMOs in specific counties under various legislative proposals. Specifically, we estimated the monthly payments using a computer model based on data from the Centers for Medicare and Medicaid Services (CMS). In a similar project, we analyzed the monthly payments made from CMS to rural hospitals.
We estimated the impact on pharmaceutical company revenues and the cost to the federal government of various proposals before Congress to include prescription drugs in health care coverage. Health care companies, pharmaceutical companies, hospitals and the government agencies involved in Medicare and Medicaid will all be affected by the outcome of prescription drug legislation.
We studied the cost to employers and health plans of patients' rights bills that included mental health coverage, length of stay requirements, etc. to insurance companies and individuals (in the form of increased premiums).
We studied the impact of the R&D credit on the effective tax rates on the profits of the pharmaceutical industry.
We studied R&D spending in the pharmaceutical industry in relation to other industries, by comparing R&D to sales ratios, R&D to assets ratios, etc. It may benefit pharmaceutical companies to use this analysis to support proposals for changes in the way the R&D credit is applied to various industries.
Our technology professionals manage large amounts of data and model complex financial and tax processes. For example, we have extracted and analyzed corporate data to identify double-payment of invoices. We also assist clients with the development of web-sites and other Internet applications. For example, we created and deployed an Internet application to allow individualized calculations of the impact of social security reform.
Who's interested in technology solutions?
Companies, trade organizations, and non-profit groups may benefit from our web-based applications, on-line surveying, and data extraction and warehousing services. Our professionals provide systems analysis and design, program development and deployment, and project implementation.
How our clients add value through our technology solutions
A utility company is using our customized implementation of "Proper tax." It is Internet-based software designed to streamline the current process of assessing real and personal property tax assessments;
A telecommunications company is using our combined stock basis and earnings and profits database application, "Step up", to provide a thorough valuation tool for its numerous subsidiaries;
Financial services companies are using a model that we built to automate their original issue discount tax deferral calculations;
Companies are using software that we developed for calculating foreign sales commissions. The software goes beyond standard calculations and seeks to add value by increasing FSC profits; and
A non-profit research group is using a web application that we developed so individuals can estimate their Social Security benefits under current rules and under alternative rules that may be proposed.
