The Raleigh City Council has just voted to levy a sizable per-garage-space tax on single family homes, arguing that garages, and especially multi- car garages, are an excellent indicator of the earnings of the residents. Why would the City want to impose such a tax? What are some potential problems with this tax? What changes in single- family homes might you predict if the new tax is implemented? And what changes in the amount of home building might you expect relative to Chapel Hill or Durham?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Economics
The Raleigh City Council has just voted to levy a
sizable per-garage-space tax on single family
homes, arguing that garages, and especially multi-
car garages, are an excellent indicator of the
earnings of the residents. Why would the City want
to impose such a tax? What are some potential
problems with this tax? What changes in single-
family homes might you predict if the new tax is
implemented? And what changes in the amount of
home building might you expect relative to Chapel
Hill or Durham?
Transcribed Image Text:Economics The Raleigh City Council has just voted to levy a sizable per-garage-space tax on single family homes, arguing that garages, and especially multi- car garages, are an excellent indicator of the earnings of the residents. Why would the City want to impose such a tax? What are some potential problems with this tax? What changes in single- family homes might you predict if the new tax is implemented? And what changes in the amount of home building might you expect relative to Chapel Hill or Durham?
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