c. Now consider the case where all communities are imposing property taxes, but some are imposing higher

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c. Now consider the case where all communities are imposing property taxes, but some are imposing higher property tax rates than others. We can then think of the national property tax system as having two components: First, there is an average property tax rate t that is imposed across the country, and second, each community i has a supplemental local tax that may be positive or negative depending on whether its property tax rate lies above the national average or below. Treating the national average tax rate like case 2 in part (b), what do you think is the general equilibrium incidence of this portion of the U.S. property tax system?

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