The state of Florida started to implement the so-called “Save Our Home” Amendment in 1995, which essentially caps annual increases in taxable property at either 3 percent or the change of in the Consumer Price Index, whichever is lower. What is the intended purpose of this cap? What are the unintended consequences? In both cases, discuss the implication of the policy consequences on equity, neutrality (or economic efficiency), and administrative/compliance costs.
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