Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

With Proposition 13, if you bought your house 11 years ago [#permalink]
03 Nov 2008, 21:36

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct
0% (00:00) wrong based on 0 sessions

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 (B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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 (D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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. _________________

"You have to find it. No one else can find it for you." - Bjorn Borg

Re: CR : Proposition 13 [#permalink]
03 Nov 2008, 23:55

IMO E.

Prop 13 - People who purchased property in the past will pay a smaller amount of taxes. Without Prop 13 - People will pay taxes according to the fair market value. Therefore, Prop 13 benefits those who purchased their homes for a lesser amount.

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value. Where did unconstitutional come from? It's an opinion and should be eliminated. (B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. Too extreme. Also, what does substantial mean? This term is subjective. (C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. Inflation? Where did this term come from? (D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. Not true. If we purchased 2 identical properties at the same time and for the same price, they would be taxed at the same rate. (E) Proposition 13 has benefited some homeowners more than others. We know that at least 1 homeowner has benefited - the one who purchased a home 11 years ago. That person is paying a lot less than the person purchasing a home today.

Hope I'm correct!

Last edited by somerandomguy on 04 Nov 2008, 01:48, edited 1 time in total.

Re: CR : Proposition 13 [#permalink]
03 Nov 2008, 23:59

somerandomguy wrote:

IMO E.

Prop 13 - People who purchased property in the past will pay a smaller amount of taxes. Without Prop 13 - People will pay taxes according to the fair market value. Therefore, Prop 13 benefits those who purchased their homes for a lesser amount.

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value. Where did unconstitutional come from? It's an opinion and should be eliminated. (B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. Too extreme. Also, what does substantial mean? This term is subjective. (C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. Inflation? Where did this term come from? (D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. Not true. If we purchased 2 identical properties at the same time and for the same price, they would be taxed at the same rate. (E) Proposition 13 has benefited some homeowners more than others. We know that at least 1 homeowner has benefited - the one who purchased a home 11 years ago. That person is only paying a lot less than a person purchasing a home today.

Re: CR : Proposition 13 [#permalink]
04 Nov 2008, 00:07

amitdgr wrote:

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.

I would like to mimic this reasoning as, hoping you realize the pattern:

(Living) with you, I feel terrible (Living)without you, I am comfortable If you are not (living) far away from me, I will continue to feel terrible _________________

Re: CR : Proposition 13 [#permalink]
04 Nov 2008, 00:25

bigtreezl wrote:

somerandomguy wrote:

IMO E.

Prop 13 - People who purchased property in the past will pay a smaller amount of taxes. Without Prop 13 - People will pay taxes according to the fair market value. Therefore, Prop 13 benefits those who purchased their homes for a lesser amount.

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value. Where did unconstitutional come from? It's an opinion and should be eliminated. (B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. Too extreme. Also, what does substantial mean? This term is subjective. (C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. Inflation? Where did this term come from? (D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. Not true. If we purchased 2 identical properties at the same time and for the same price, they would be taxed at the same rate. (E) Proposition 13 has benefited some homeowners more than others. We know that at least 1 homeowner has benefited - the one who purchased a home 11 years ago. That person is only paying a lot less than a person purchasing a home today.

Re: CR : Proposition 13 [#permalink]
04 Nov 2008, 01:19

amitdgr wrote:

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. extreme. (B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. If Proposition 13 is repealed,it seems that rate will be 3% for every homeowner which is higher than the rate with proposition 13 in place. (C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. Out of scope. (D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. "Rates" are not different with proposition 13 (E) Proposition 13 has benefited some homeowners more than others. Everyone has paid at the same interest rate every year since they have bought their houses. It is not correct to say it benefited only some.

Re: CR : Proposition 13 [#permalink]
04 Nov 2008, 02:19

B for me too. the author cant make a concrete statement as he does in E based on conditional premise(s). if you bought your house 11 years ago for $75,000.. we dont if people actually did benefit from Proposition 13.