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Aroca County s public schools are supported primarily by

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Re: complete the argument [#permalink] New post 03 May 2009, 19:42
IMO B

Which if the following, if true, most logically completes the argument?
Aroca County’s public schools are supported primarily by taxes on property. The county
plans to eliminate the property tax and support schools with a new three percent sales tax
on all retail items sold in the county. Three percent of current retail sales is less than the
amount collected through property taxes, but implementation of the plan would not
necessarily reduce the amount of money going to Aroca County public schools, because
______.
A. many Aroca County residents have already left the county because of its high
property taxes --> weaken
B. a shopping mall likely to draw shoppers from neighboring counties is about to
open in Aroca County --> best. Many shoppers come to buy goods in Aroca County will make more retails taxes for Aroca, thereby offsetting the loss in properties tax
C. at least some Aroca County parents are likely to use the money they will save on
property taxes to send their children to private schools not funded by the county --> irrelevant and dont' resolve the paradox
D. a significant proportion of parents of Aroca County public school students do not

own their homes and consequently do not pay property taxes --> no influence because not only parents of Aroca County public students pay tax, there are also many other kinds of people who pay tax: no children-families, parents of private students, etc. And if the new law is applied, the property tax still lower than before
E. retailers in Aroca County are not likely to absorb the sales tax by reducing the
pretax price of their goods --> weaken
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Re: complete the argument [#permalink] New post 10 Jun 2009, 02:56
It's B for me too.
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Re: complete the argument [#permalink] New post 13 Jun 2009, 21:52
B for me as well.....I think thinking on the lines of the amount of money that parents have fro funding their child's study goes out of context.....We need to stress on the amount of money that is available with the government through the taxes...
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Re: complete the argument [#permalink] New post 13 Jun 2009, 21:56
B for me.
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Re: CR - Aroca County [#permalink] New post 12 Oct 2011, 09:20
mallelac wrote:
Guys I am totally confused as I am against almost all the guys here. I am choosing D.

A mall may attract people who may not buy anything!!

In case of D, though the property tax is more than the sales tax, the total amount collected through property tax is less because the significant number of people are not paying the amount as they donot own their own house. Now, the conclusion "implementation of the plan would not necessarily reduce the amount of money going to Aroca County public schools" can be followed because already the amount collected is less through property tax and it may be met comfortably through sales tax.


pb_india wrote:
Aroca County?s public schools are supported primarily by taxes on property. The county plans to eliminate the property tax and support schools with a new three percent sales tax on all retail items sold in the county. Three percent of current retail sales is less than the amount collected through property taxes, but implementation of the plan would not necessarily reduce the amount of money going to Aroca County public schools, because ______.

A. many Aroca County residents have already left the county because of its high property taxes
B. a shopping mall likely to draw shoppers from neighboring counties is about to open in Aroca County
C. at least some Aroca County parents are likely to use the money they will save on property taxes to send their children to private schools not funded by the county
D. a significant proportion of parents of Aroca County public school students do not own their homes and consequently do not pay property taxes
E. retailers in Aroca County are not likely to absorb the sales tax by reducing the pretax price of their goods


Can somebody help explain why to chuck out D?
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Re: CR - Aroca County [#permalink] New post 12 Oct 2011, 18:43
^ D addresses a select subset of people from the county - 'parents of Aroca County public school' . We have no idea what percent of the whole population (of the county) are from this subset. For all we know, this subset can make only 2% of the population of the entire county. Hence, the offset ( of not paying taxes ) by this group need not necessarily bring down the tax collection of the entire county by a big margin.
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Re: CR - Aroca County [#permalink] New post 13 Oct 2011, 05:50
My ans is B.
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Re: complete the argument [#permalink] New post 09 Mar 2012, 23:34
vageesh wrote:
Which if the following, if true, most logically completes the argument?
Aroca County’s public schools are supported primarily by taxes on property. The county
plans to eliminate the property tax and support schools with a new three percent sales tax
on all retail items
sold in the county. Three percent of current retail sales is less than the
amount collected through property taxes, but implementation of the plan would not
necessarily reduce the amount of money going to Aroca County public schools, because
______.
A. many Aroca County residents have already left the county because of its high
property taxes
B. a shopping mall likely to draw shoppers from neighboring counties is about to
open in Aroca County
C. at least some Aroca County parents are likely to use the money they will save on
property taxes to send their children to private schools not funded by the county
D. a significant proportion of parents of Aroca County public school students do not
own their homes and consequently do not pay property taxes
E. retailers in Aroca County are not likely to absorb the sales tax by reducing the
pretax price of their goods

pls check b/w B & C,


I would like to emphasize on the bolded parts. The question mentions retail sales but nothing of this sort has been mentioned in Option B.
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Re: [#permalink] New post 12 Mar 2012, 04:00
ywilfred wrote:
I'll go with (C) after deliberating (B). If some children are not attending the county public schools, the amount spent per student in a school will not decrease even though the 3% sales tax is less than the property tax.

(B) merely says a shoping mall is drawing more shoppers, but it does not mean this increased number will result in a sales tax comparable to the amount collected through property tax.


The argument doesn't talk about "amount spent per student", instead the total amount of money(irrespective how many are attending public schools or if anyone shifting to private schools) to be spent doesn't change after property tax replaced with sales tax. C doesn't resolve the paradox.

In order B to be true, we need to assume that the new mall compensates the lost money due change in taxation method. I am not sure if we can make that assumption. None of the answer choices are correct to me. I am stumped. Help please.
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 15 Mar 2012, 03:00
only B makes sense among other options
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 20 Mar 2012, 10:46
very confused........
but will go with B
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 16 May 2012, 12:09
It is a clear B . I got it done in 1 min 13 sec
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 09 Jun 2012, 23:54
i pick B here. A is out of scope because in stimulus there is no evidence that property tax is high. C is out of scope too. in B, it states eventhough the percent of current sales is less than the amount collected through property tax, if a shopping mall likely to draw shoppers from neighboring counties is about to open in aroca the revenue from sales tax will be increased.
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 19 Jul 2012, 01:13
imo b let see my choice is corrrct ot not
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Re: Aroca County s public schools are supported primarily by [#permalink] New post 27 Nov 2013, 09:18
The key question is: how will the 3% sales tax not reduce the current tax revenue from property taxes. put the focus on the 3% sales tax and B is the only reasonable choice supporting that decision.
Re: Aroca County s public schools are supported primarily by   [#permalink] 27 Nov 2013, 09:18
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