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October 29th, 2006 12:35 PM
#1
vinny
Guest
CR - house tax
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(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.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(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.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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October 29th, 2006 12:38 PM
#2
vinny
Guest
Oops wrong forum! Moderators please move it to CR area!
Thanks
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October 31st, 2006 08:41 AM
#3
maverick7777
Guest
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October 31st, 2006 09:09 AM
#4
rashmi
Guest
Maverick7777 plz expalin how
its a bouncer for me
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October 31st, 2006 10:17 AM
#5
I will go with B.. tax under prop 13 is around 3% but without prop 13 tax is around 1% .. .. moreover others don't seem correct.
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October 31st, 2006 10:19 AM
#6
maverick7777
Guest
@rashmi
USE POE (Process of Elimination)
A-Wrong- the author is not hinting at unconstitutionalityt of the argument
C-Wrong-Concusion should flow from premises & assumption, inflation concerns are mentioned in none, thus not valid conclusion
D-Wrong-not a valid conclsion, not a valid inference
E-Wrong- Absloute genralizations are genrally wrong in the GMAT CR. ( u can confirm the same with mods), and so is the case here.
Thus u dont even have to read B. All others all eliminated.
Best way to dicuss CR is u specifically speak out , which answer u feel is right & than we will have a brainstorming.
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January 11th, 2007 03:46 PM
#7
shah1237
Guest
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January 11th, 2007 09:27 PM
#8
with proposition 13 the tax amount has incresed as per the argument .
thats what b says in other way around
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