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

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Manager
Joined: 09 Sep 2004
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With Proposition 13, if you bought your house 11 years ago [#permalink]

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16 Nov 2004, 17:39
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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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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.
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17 Nov 2004, 12:44
I think its B. the argument conveys that people are paying different taxes on identical houses depending upon the purchase prices of the houses. And if the proposition 1 ceases to be in force, then the people would pay the tax that can be calculated according to the highest cost price of identical houses. hence, its only because of proposition 13 that they are not doing so. B clearly matches this.
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17 Nov 2004, 14:51
Thanks Ruhi for the explanation. The OA is B
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02 Dec 2004, 22:36
Cant seem to decide between B and E........

Can anyone explain why E is wrong? I am not able to find a strong reason to discard E.......

Any input will be appreciated
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