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# With Proposition 13, if you bought your house 11 years ago

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SVP
Joined: 14 Dec 2004
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With Proposition 13, if you bought your house 11 years ago [#permalink]

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28 Nov 2005, 07:44
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With Proposition 13, if you bought your house 11 years ago for $75,000, your property tax would be approximately$914 a year (1 percent of
$75,000 increased by 2 percent each year for 11 years); and if your neighbor bought an identical house next door to you for$200,000 this
year, his tax would be $2,000 (1 percent of$200,000). Without
Proposition 13, both you and your neighbor would pay $6,000 a year in property taxes (3 percent of$200,000).

Which of the following is the conclusion for which the author most likely is
arguing in the passage above?

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
(E) Proposition 13 has benefited some homeowners more than others

Please explain...
Manager
Joined: 18 Oct 2005
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Location: Hong Kong
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[#permalink]

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28 Nov 2005, 08:05
this is a tough one..
A and C are out of scope.

I choose B.
D and E are evidence only, they dont match the conclusion.

what's the OA? PM me if you prefer to wait for more answers...
SVP
Joined: 28 May 2005
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28 Nov 2005, 12:12
I think it is B.
_________________

hey ya......

Manager
Joined: 05 Nov 2005
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Re: CR: Property Tax [#permalink]

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28 Nov 2005, 13:39
I also vote for B.

E is very general and D is wrong. I think the catch in this problem is that many might initially think that 1% + 2% = 3 %. However it is not 2 percentage points but rather an increase of 2 %.

I am pretty sure it is B.
SVP
Joined: 14 Dec 2004
Posts: 1702
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Kudos [?]: 128 [0], given: 0

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28 Nov 2005, 21:58
The OA is 'B'
[#permalink] 28 Nov 2005, 21:58
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# With Proposition 13, if you bought your house 11 years ago

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