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Any tax relief received by the solar industry would not

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Any tax relief received by the solar industry would not [#permalink] New post 24 Dec 2012, 10:50
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

84% (02:24) correct 16% (01:25) wrong based on 87 sessions
Any tax relief received by the solar industry would
not benefit the homeowner who installs a solar-
energy system. Even though homeowners would pay
a lower price for solar-energy system installations
because of this tax relief, with the government
paying the balance, government revenues come from
the public.
The argument above is based on which of the
following assumptions?

(A) The tax relief would cause the homeowner to
lose, through taxes or reduced government
benefits or both, an amount at least equal to
the reduction in the price of that home-
owner's solar-energy system installation.
(B) The tax relief that would be received by solar-
energy industries would not be offered at the
same time as any tax relief for other indus-
tries.
(C) Advertisements of the solar-energy industry, by
failing to identify the source of government
revenues explicitly to the public, mask the
advantage the industry receives from the
public.
(D) Homeowners generally believe that they benefit
from any tax relief offered to the solar-energy
industry.
(E) Tax relief would encourage solar industries to
sell solar-energy systems at higher prices.


Can someone help me understand the argument and identify the conclusion?
Will provide the OA soon!

Thanks
[Reveal] Spoiler: OA

Last edited by krackgmat on 25 Dec 2012, 13:04, edited 1 time in total.
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Concentration: Marketing, International Business
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Re: Any tax relief received by the solar industry would... [#permalink] New post 24 Dec 2012, 11:48
1
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IMO A.

Will explain if it is correct.
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Re: Any tax relief received by the solar industry would... [#permalink] New post 26 Dec 2012, 08:42
You are right. Official Answer is A.
AGSM Thread Master
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Joined: 19 Jul 2012
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Location: India
Concentration: Marketing, International Business
GMAT 1: 630 Q49 V28
GPA: 3.3
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Kudos [?]: 81 [0], given: 31

Re: Any tax relief received by the solar industry would... [#permalink] New post 26 Dec 2012, 09:15
krackgmat wrote:
You are right. Official Answer is A.


The argument concludes that Homemaker even after getting the installation of solar-energy at reduced price would not benefit.

We are looking for a reason, which shows that Homemaker will somehow not get this benefit or this benefit will get offset by other factors.

Option A provides this reason. It says that Homemaker will pay at least the reduced amount (discount) by increase taxes, reduce government taxes, or both.

Hope it helps.
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Re: Any tax relief received by the solar industry would not [#permalink] New post 29 Dec 2012, 08:31
krackgmat wrote:
Any tax relief received by the solar industry would
not benefit the homeowner who installs a solar-
energy system. Even though homeowners would pay
a lower price for solar-energy system installations
because of this tax relief, with the government
paying the balance, government revenues come from
the public.
The argument above is based on which of the
following assumptions?

(A) The tax relief would cause the homeowner to
lose, through taxes or reduced government
benefits or both, an amount at least equal to
the reduction in the price of that home-
owner's solar-energy system installation.
(B) The tax relief that would be received by solar-
energy industries would not be offered at the
same time as any tax relief for other indus-
tries.
(C) Advertisements of the solar-energy industry, by
failing to identify the source of government
revenues explicitly to the public, mask the
advantage the industry receives from the
public.
(D) Homeowners generally believe that they benefit
from any tax relief offered to the solar-energy
industry.
(E) Tax relief would encourage solar industries to
sell solar-energy systems at higher prices.


Can someone help me understand the argument and identify the conclusion?
Will provide the OA soon!

Thanks


The Conclusion is that none of the homeowners will receive the tax benefit on solar energy system.
The evidence is that the government is paying the balance; the balance amount comes from the government revenues, which are collected from public.
The author is assuming that whatever homeowners save for solar system will be paid as the government revenues.
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Re: Any tax relief received by the solar industry would not [#permalink] New post 29 Dec 2012, 13:02
Thanks guys.. your responses did help me in understanding the argument!
Re: Any tax relief received by the solar industry would not   [#permalink] 29 Dec 2012, 13:02
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