Conversely, if labour supply is relatively inelastic and labour demand is relatively elastic, then the enterprise will bear more of the tax burden. For low-income groups, more progressivity through earned income tax credit (EITC) schemes increases work incentives but the resulting increase in labour supply may reduce wages - the EITC may increase the dispersion of before-tax income.32 However, for high-income groups, more progressive taxes may dampen work incentives and lower working hours. This could narrow the earnings dispersion. While most property taxes are paid by owners, they may largely be passed onto renters in the form of higher rents as the supply of housing is relatively inelastic, at least in the short term.