Question:

CPI GDP Tax Question?

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I am trying to collect annualized GDP and CPI data from 2003 - 2007 and compare it to industry trends (restaurants, retail, etc) for Westchester County. Looking at Rockland County for example, they have Sales Tax funds from the automotive industry (example) almost identicle in numerical value and trends to the CPI and GDP. Is this possible or did they manipulate the data? For example the 2004 collections is ~$15.72 million, annualized GDP is $16.9million and CPI for that year is $17.019 million. I don't see how these numbers can be even close when CPI is done on a national average. Am I missing something?

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  1. I don't think the people at the BLS manipulate the numbers although politician and advocates for policy pick and choose which numbers to emphasize.  GDP=real GDP X GDP deflator  not the CPI. also tax revenue depends on the level of economic activity  as well as the CPI

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