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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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03 Nov 2008, 22:36
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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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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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Director
Joined: 23 May 2008
Posts: 742
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 00:27
between B and D, go with B
Intern
Joined: 28 Oct 2008
Posts: 45
Re: CR : Proposition 13 [#permalink]

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Updated on: 04 Nov 2008, 02:48
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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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!

Originally posted by somerandomguy on 04 Nov 2008, 00:55.
Last edited by somerandomguy on 04 Nov 2008, 02:48, edited 1 time in total.
Director
Joined: 23 May 2008
Posts: 742
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 00:59
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.

Hope I'm correct!

good points! you MUST be an LSAT guy..lol
SVP
Joined: 04 May 2006
Posts: 1784
Schools: CBS, Kellogg
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 01:07
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
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Joined: 28 Oct 2008
Posts: 45
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 01:25
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.

Hope I'm correct!

good points! you MUST be an LSAT guy..lol

Unfortunately, yes.
Director
Joined: 14 Aug 2007
Posts: 695
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 02:19
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.

B for me.
Manager
Joined: 12 Jun 2008
Posts: 58
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 02:30
IMO B
VP
Joined: 17 Jun 2008
Posts: 1477
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 02:52
I do not agree with E simply because stimulus has "if" condition and it may not be real.
B is more clear.
Intern
Joined: 28 Oct 2008
Posts: 45
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 02:57
scthakur wrote:
I do not agree with E simply because stimulus has "if" condition and it may not be real.
B is more clear.

Good call. You're most likely right! Boo to me.
Manager
Joined: 08 Aug 2008
Posts: 226
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 03:19
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.
VP
Joined: 30 Jun 2008
Posts: 1007
Re: CR : Proposition 13 [#permalink]

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04 Nov 2008, 04:12
OA is B. Though I do not remember the source (sorry guys )

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Re: CR : Proposition 13   [#permalink] 04 Nov 2008, 04:12
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# With Proposition 13, if you bought your house 11 years ago

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