Which of the following statements suggests that property taxes might be progressive?
A)The proportion of income spent on housing tends to decline as income rises.
B)Higher-income people live in more expensive houses than do low-income people.
C)A large part of the property tax is shifted to renters,who typically have lower incomes than owners.
D)Inner city neighbourhoods often have higher property taxes than do the more affluent suburbs.
E)Elderly pensioners often live in their family homes after children have left.

Question

Quizplus · Accepted Answer

Higher-income people living in more expensive houses suggests that they pay more in property taxes, which could make the tax system progressive as it takes a larger absolute amount from those with higher incomes.

Which of the Following Statements Suggests That Property Taxes Might