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

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Senior Manager
Joined: 09 Aug 2005
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With Proposition 13, if you bought your house 11 years ago [#permalink]

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18 Dec 2005, 15:28
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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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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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Senior Manager
Joined: 03 Nov 2005
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18 Dec 2005, 17:02
C. It took me longer than 90 seconds
The author argues that homeowners would pay much more in taxes without Proposition 13.

A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.

Contradictory. Author argues that owners of higher-valued property will pay more in taxes, it's most likely to be constitutional rather than unconstitutional.

B is an Unwarranted inference.

(E) Proposition 13 has benefited some homeowners more than others.

Proposition benefited all owners. E is out

(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.

If property values are driven up, under Prepostion 13 there is a possibility that owners would pay even more in property taxes than without it. If they stay the same, property owners would pay much less.

C it is.
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Joined: 27 Jun 2005
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18 Dec 2005, 19:46
B

A) because we don't know property is of same value or not it says its identical but not same. Out
C)No mention of preventing from driving up property value
D) We don't know even after relealing the proposition 13 they will pay the same tax. The only thing we know for sure is there tatal tax will increase from $2914 to$6000
E) can't be concluded from passage
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19 Dec 2005, 03:53
I got B as well.
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hey ya......

Senior Manager
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19 Dec 2005, 12:47
OA and OE, plz.
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19 Dec 2005, 12:47
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