Suppose the city of Strelsau has a 10% property tax on rental properties. Rudolph makes $100,000 a year and pays $21,000 per year in rent. Fritz makes $40,000 per year and spends $10,800 in rent. Both Rudolph and Fritz rent from Michael. a. How is Strelsau's property tax best described? Regressive Proportional Incidental Progressive b. Who most likely actually pays the tax on rental property? The renters, Rudolph and Fritz, pay it. The landlord, Micheal, pays it. It is split evenly between the renters and the landlord. The renters and landlord negotiate who will pay it.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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 $21,000 per year in rent. Fritz makes $40,000 per year and spends $10,800 in rent. Both Rudolph and Fritz rent from Michael.
a. How is Strelsau's property tax best described?
Regressive
Proportional
Incidental
Progressive
b. Who most likely actually pays the tax on rental property?
The renters, Rudolph and Fritz, pay it.
The landlord, Micheal, pays it.
It is split evenly between the renters and the landlord.
The renters and landlord negotiate who will pay it.
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