Suppose that the province of Nova Scotia currently has a property tax that imposes the same tax rate on land and structures in the province. The provincial government has recently decided to increase the tax rate on land and remove the tax on structures.
a) Analyze the consequences of the decision on landowners, tenants, government, and the community (society) of the province, using the traditional view on the property tax. Use suitable diagrams to illustrate.
b) Analyze the consequences of the decision using the new view of the property tax. (2marks)
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