12. Your local government needs to increase tax revenue. To increase tax revenue it caneither increase the property tax on residential property or increase the property tax on allproperty. The government wants to impose the smallest excess burden possible. Yourecommend that local government increase the property tax:
(A) only on residential property because this tax cannot be shifted.
(B) on all property because the demand for all property is less elastic than the demandfor residential property.
(C) on all property, because this tax would be less regressive than a tax only onresidential property.
(D) only on residential property because taxpayers are allowed to deduct property taxesfrom their federal income tax liability, thus reducing the amount they must pay in federaltaxes.