Aroca County s public schools are supported primarily by : GMAT Critical Reasoning (CR)
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# Aroca County s public schools are supported primarily by

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Aroca County s public schools are supported primarily by [#permalink]

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21 Feb 2005, 14:56
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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 ______.

Which if the following, if true, most logically completes the argument?

(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
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21 Feb 2005, 15:46
My answer is C....If more parent use their money that they save from elimination of the property taxes to send their kids to private school then that means that is less of a cost burden to the county and thus not changing the amount going to the public schools...
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21 Feb 2005, 16:25
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Just read my answer to C and it makes no sense...actually I'm going to have to agree with anandnk and 700plus and go with B....if you are not going to get less revenue from your own county but not necessarily less overall then you must be getting money from another source...and B definately addresses the additional revenue source coming from shoppers of neighbouring counties....Yeah that greenandwise character has no idea what he's talking about!!!
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Last edited by greenandwise on 21 Feb 2005, 16:25, edited 1 time in total.
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21 Feb 2005, 16:25
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B) indicates the possibility of higher revenues because of increased sales from the mall.
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21 Feb 2005, 19:40
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.
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22 Feb 2005, 08:44
(C) does not answer why "implementation of the plan would not necessarily reduce the amount of money going to Aroca County public schools", but (B) does.
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22 Feb 2005, 10:31
I vote for (B) also. Opening another mall would add additional money going to Aroca county's public schools.

(C) mentions kids going to private schools, which I think is out of scope of the argument's main point.
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Re: CR - Aroca County [#permalink]

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22 Feb 2005, 11:42
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

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22 Feb 2005, 17:58
B, but I made the same mistake as greenandwise at the beginning and chose C at first
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23 Feb 2005, 05:40
I will pick (B).

Implementation of "sales tax" plan would not necessarily reduce the amount of money going to Aroca County Public School. However, current amount is less than "property tax".

My thought Process: I need that answer which shows that somehow in the near future "sales tax" amount will increase.
(B) says they are going to have a Shopping Mall nearby which will generate more sales tax in near future.
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23 Feb 2005, 08:26
My pick would also be B.
This is also one of those examples, where we need to have forward thinking into the future, where its going to fetch more money to finance school system.
I didn't pick C, because it was not given that the parents are not going to shell out of their pockets(Its out of scope).
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23 Feb 2005, 16:11
OA is "B"
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10 Aug 2005, 02:58
Which if the following, if true, most logically completes the argument?

Aroca Countyâ€™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
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10 Aug 2005, 04:56
only B makes sense
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10 Aug 2005, 05:04
B solves the paradox because it introduces a new factor that can aide in more state revenue. The other choices seem irrelevant, or out of scope.
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10 Aug 2005, 05:49
what is wrong with D? The sales tax is able to make those who do not pay property rights tax to pay. Thus D does make sense.
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10 Aug 2005, 06:45
okdongdong wrote:
what is wrong with D? The sales tax is able to make those who do not pay property rights tax to pay. Thus D does make sense.

last sentence says

but implementation of the plan would not necessarily reduce the amount of money going to Aroca

so we need to find a choice that address retail sales
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10 Aug 2005, 08:22
Half hearted B
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10 Aug 2005, 19:40
B is most likely however all choices are irrelavant.
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11 Aug 2005, 10:20
(B) too.
11 Aug 2005, 10:20

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