If one city lowers property taxes, then most of the benefits will go to landowners in that

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“If one city lowers property taxes, then most of the benefits will go to landowners in that city when taxes are reduced.” Evaluate this statement in terms of economics by analyzing first the effects of the tax decrease on the amount of capital in the city and then on the markets for land, labor, and housing in the city. Under what conditions is the statement correct?

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