Business, 19.03.2020 17:15 christopherschool04
Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on residential property or increase the property tax on all property. The government wants to impose the smallest excess burden possible. What would your recommendation be?
a) to increase the property tax only on residential property because this tax cannot be shifted
b) to increase the property tax on all property because the demand for all property is less elastic than the demand for residential property.
c) to increase the property tax on all property, because this tax would be less regressive than a tax only on residential property.
d) to increase the property tax only on residential property because taxpayers are allowed to deduct property taxes from federal income tax inability, thus reducing the amount they must pay in federal taxes.
Answers: 1
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