The town of Oz has raised its property tax rates considerably above the national average.Other things being equal, capital is likely to flow into Oz in the long run because of the tax.

Question

Quizplus · Accepted Answer

Increasing property tax rates are likely to discourage capital investment in the town because property owners will have to pay more in taxes, reducing their disposable income and potentially decreasing demand for goods and services. As a result, capital is more likely to flow out of Oz in the long run.

The Town of Oz Has Raised Its Property Tax Rates