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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose the city of Strelsau has a 10%property tax on rental properties. Rudolph makes $100,000 a year and pays $23,000 per year in rent. Fritz makes $40,000 per year and spends $11,600 in rent. Both Rudolph and Fritz rent from Michael.
a.) How is Strelsau’s property tax best described?
b.) Who most likely actually pays the tax on the rental property?
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