Amtown’s public schools are supported primarily by town property taxes. The town plans to eliminate the property tax and support schools with a new four-percent sales tax on all retail items sold in town. Four percent of current retail sales is substantially less than the amount currently collected through property taxes, but town planners believe that adopting this plan will not have a negative impact on the funds available for the town’s public schools because ______.
Which of the following most logically completes the argument?
(A)a new shopping center that will draw shoppers from neighboring towns will open this year in Amtown
(B)many Amtown residents are planning to leave town due to high property taxes
(C)a number of parents who currently send their children to Amtown’s public schools do not pay property taxes.
(D)the sales tax in neighboring towns is much higher than four percent
(E)Amtown was recently featured in a magazine as one of the top 10 weekend getaways from a nearby city.
Need detail explanation..............
The question is on lower side.....
Lets focus on the conclusion:-
Though the sales tax revenue amounts to a lesser value than the revenue collected from property tax, planners are confident that the sales tax amount will see a rise.
It is not mentioned why will that rise be? we have to find, that reason......So one probable and quickest way to think is that people who previously did not paid the tax will now pay the tax because they want the school not to run out of funds.....or something that support the idea that newer shops will be set up and these shops will help increase the tax base....
With that in mind attack the answer choices:
A. So brings in new idea that help increase the sales tax. probable answer...
B. Weakener...If the residents leave the town their tax base will decline.
C. Does not present any solution, just presents fact.
D. What we will do by knowing other town's tax rate.
E. If its featured as top 10 weekend getaways...how is it going to change the present condition...this is already present.....Yes if it presented that due to some reasons...the city is going to encounter more customers during weekend, than it could have been considered......
Consider Kudos If my post helps!!