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

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

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04 Aug 2006, 23:47
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17.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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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.

can some body tell me the math behind it...
ps_dahiya: removed the OA. Please don't provide the OA upfront. This will help you in getting true logic.
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shinewine

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04 Aug 2006, 23:56
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I was b/w B and E, but the fact that someone bought a house 11 years ago doesn't play the biggest role here, hence E is out... here is the analysis of B:

with Prop 13 you pay $964 and you neighbor pays$2000, combined you both pay just under $3000 w/out Prop 13 you both pay$6000...

therefore, you and your neighbor are likely to experience some increase in property tax... no convoluted math here...
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Re: CR from 1000CR : Proposition 13 [#permalink]

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05 Aug 2006, 01:07
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Imo D.. even though I know what the OA is..
I don't think we can assume that there are more ppl who bought properties at lower rate that those who buy properties at higher rate..
All the cases in the argument are hypothetical.
(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
=> We can't assume author's position from the argument.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
=> Only if every homeowners bought those properties at lower rate. What if there are more ppl. who buy properties
If it says "If Proposition 13 is repealed, there will be a substantial increase in property taxes. I would choose B.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
=> Well, If B is the one.. this one has equal value as B.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
=> With Proposition 13, true.. but might be an answer for inference question.
(E) Proposition 13 has benefited some homeowners more than others.
=> We don't know which is which..

However, we are being asked "Which of the following is the conclusion for which the author most likely is arguing in the passage above?"... does this type of question need particular approach??
Assumption => Most ppl bought properties at lower value..and those propeties' value is going up..
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05 Aug 2006, 08:45
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B
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Re: CR from 1000CR : Proposition 13 [#permalink]

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05 Aug 2006, 21:24
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shinewine wrote:
17.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.

can some body tell me the math behind it...
ps_dahiya: removed the OA. Please don't provide the OA upfront. This will help you in getting true logic.

IMO C. Will explain later if correct
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06 Aug 2006, 04:34
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This is between (D) and (E).

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value. ---> out of scope
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. ---> extreme
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. ---> too general

(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. ---> What if the identical properties were purchased in the same year??
(E) Proposition 13 has benefited some homeowners more than others.

(E) is the most conservatively phrased and definately supported by the passage.
06 Aug 2006, 04:34
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