ECONOMIC-IMPACTS OF A PROPERTY-TAX LIMITATION - A COMPUTABLE GENERAL EQUILIBRIUM-ANALYSIS OF OREGON MEASURE-5

A state-level computable general equilibrium (CGE) model was used to i nvestigate economic adjustment to a property tax limitation in Oregon. Findings under two CGE model variants are compared with results using a fixed-price, input-output type model. The analysis suggests that: ( 1) total output and income increase under the limitation, with high-in come households benefitting most and low-income households least; (2) even with income growth, total state and local government tax revenues and spending shrink significantly; (3) the limitation makes Oregon's tax system slightly less progressive at the top of the income distribu tion but slightly more progressive at the bottom.