In California, property values are reassessed only after a sale has taken place. For proper-ties that have not been sold in the past year, the law allows only a small increase in the assessed value. Consequently, someone who purchased his home many years ago likely has a lower property tax bill than someone who purchased an identical home recently. Does this violate horizontal equity? In your answer, carefully de-fine all key concepts.
Answer to relevant QuestionsIndicate whether each of the following statements is consistent with an organic or mechanistic view of government: a. “If you want to believe in a national purpose that is greater than our individual interests, join us” ...The following table shows the composition of US federal expenditures in 1997, 2001, 2007, and 2011. From 1997 to 2001, GDP went from $ 8.3324 trillion to $ 10.2862 trillion, the GDP price deflator (used to calculate ...Former New York governor, Eliot Spitzer, ob-served that when one examines the data from the United States over time, there is “ no correlation between higher marginal tax rates and slowing economic activity.” He ...In each case listed below, can you rationalize the government policy on the basis of welfare economics? a. In Los Angeles, the police respond to 127,000 burglar alarm calls per year. There is no charge. (Ninety- seven ...Illustrate the following circumstances using community indifference curves and the local government budget constraint: a. An unconditional grant increases both the quantity of public goods purchased and local taxes. b. A ...
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