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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.


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