Document Type
Article
Publication Date
4-1-2019
Abstract
This paper develop a computable general equilibrium (CGE) model and a microsimulation model (MSM) to analyze the economic and welfare effects of a Georgia property tax proposal, which would have effectively eliminated school property taxes on homesteaded properties and replaced the lost revenue with a revenue-neutral increase in the state sales tax. Our CGE model, which is a modification of that used in Condon et al. (2015), explores the effects of significantly reducing or eliminating Georgia’s income tax and implementing a revenue-neutral increase in the state sales tax. This paper is set up as follows. We describe the Georgia proposal to reduce property taxes. Following that is a description of the CGE model, and a discussion of the outcomes of that model. The next section presents the MSM and its results. The last section concludes.
Recommended Citation
Feltenstein, Andrew; Rider, Mark; Sjoquist, David; and Winters, John, "The Impact of
Interstate Mobility on
the Effectiveness of
Property Tax Reduction
in Georgia" (2019). CSLF Working Papers. 7.
https://scholarworks.gsu.edu/ays_cslf_workingpapers/7
Comments
To learn more about the Andrew Young School of Policy Studies and Center for State and Local Finance , visit https://aysps.gsu.edu/ and https://ideas.repec.org/s/ays/cslfwp.html.