Suppose a state is considering three diffrent types of fiscal limits for local government in the state a maximum property tax rate,
Suppose a state is considering three diffrent types of fiscal limits for local government in the state a maximum property tax rate, a limit that property tax revenue maynot increase more than population and inflation rate together, or a limit that spending may not increase more than five percent. In eache case, the limit may exceed by majority vote. Which limit is most restritive and why? Contrast the three in terms of the sources of allowed increases in taxes or spending and the potential effects on local services.
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