Ec. Waters et al., ECONOMIC-IMPACTS OF A PROPERTY-TAX LIMITATION - A COMPUTABLE GENERAL EQUILIBRIUM-ANALYSIS OF OREGON MEASURE-5, Land economics, 73(1), 1997, pp. 72-89
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.