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# Mayor of town T decided to lower the sales tax in order to

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Mayor of town T decided to lower the sales tax in order to [#permalink]  05 Jul 2006, 08:33
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13. Mayor of town T decided to lower the sales tax in order to boost the sales volume and therefore increase the budget by eventually receiving more sales tax as the result of the increased sales volume. The mayor wants to follow the example of town J, where such an experiment helped increase the budget twice in a three year term.
Which of the following statements is the best proof that the opponents to the mayor's proposal can use in order to persuade the population of town T not to support this decision?

a. Town J is located very close to the borders of other three states, which causes residents of other states to shop in town J, as the sales taxes in those other states are higher than in this state. Town T is located far from any state border.
b. Town T is not big enough to make the difference of the sales tax received to budget positive as the result of the proposed change.
c. Town J has many more industrial plants that purchase raw materials from the town's mines.
d. This kind of an experiment did not work in any other of the six towns that lowered the sales tax.
e. The mayor is corrupted by several groups of residents of town T. These groups are highly interested in lowering the sales tax as the move will make them much richer.
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I'll go with A, but not 100% sure
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I think it is A as well

We are comparing town T with town J and in order to make things work the same in town T as in town J those towns have to be similar. in choice A we see that town J is different from town T and thus is a correct choice

A says that town J has borders with other states that have higher taxes, so everyone comes to town J from those states and that is how they get higher profits... Town T, on the other hand, is not said to have borders and is not in the same position, so we can conclude that based on such fact that sales tax reduction might not work, thus should not be supported.
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Between A and D, I go with A.
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"E" it is.
Option "E" has the argument which can convince the population to oppose the Mayor.
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I feel it should be A.
The residents should be happy because of lowering of tax.Why should they be bothered about the volume of sales.Hence i'm eliminating the other choices.
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Oops...I meant E.
The above explanation holds good in support of E.
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I think it should be A.

From my point of view E is wrong, because even when certain group of people becomes richer, it does not necessarily mean that this step won't be beneficial for the town.

What is the OA
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I believe E can not be the answer. People who have read Arco LSAT may be knowing the term "Ad Hominem" (Attacking the person instead of the problem).
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It should be D.

It worked in one town but it failed in 6 towns.
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agree with u2lover's expln. should be A.
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Will go with A.

The mayor is proposing that a reduced sales tax will increase the sales.
B is a close choice but when you look carefully, the population of the town doesnot matter. Increased sales can be due to various other reasons like people buying more, people from other town buying.

the former is illustrated in A. basically it attributes the increased sales to the buying of goods by people from other states. Hence comparing town T with town J would be fallcious as the circumstances are different
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What is wrong with D..
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Re: GMAT Club CR Series #13: Mayor of Town T [#permalink]  06 Jul 2006, 06:07
A is the best choice.
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I will go with B.

the only thing that matters to people is how the change in sales tax would affect the budget in their own state. whatever happenned in other state may or may not happen in this particular state. So, if the state is not big enough, the increase in sales might not be sufficient enough to raise more number of sales tax dollars. This would defeat the purpose.\

what is OA guys?
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A, I think.

We need to find something dissimilar b/w the towns T and J to weaken this argument. Only A and C stand.

Since C mentions industrial plants within town, I would not expect a significant rise in sales volume from here... So A.
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Re: GMAT Club CR Series #13: Mayor of Town T [#permalink]  06 Jul 2006, 14:10
TestWriter wrote:
13. Mayor of town T decided to lower the sales tax in order to boost the sales volume and therefore increase the budget by eventually receiving more sales tax as the result of the increased sales volume. The mayor wants to follow the example of town J, where such an experiment helped increase the budget twice in a three year term.

Which of the following statements is the best proof that the opponents to the mayor's proposal can use in order to persuade the population of town T not to support this decision?

a. Town J is located very close to the borders of other three states, which causes residents of other states to shop in town J, as the sales taxes in those other states are higher than in this state. Town T is located far from any state border.

b. Town T is not big enough to make the difference of the sales tax received to budget positive as the result of the proposed change.

the strong reason not to persue the same plan as the town J has would be B. but the question is asking for a proof, which is A not B. B is just an opinion.
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town T should be able to generate more number of sales tax dollar on its own. If shoppers from other states or towns also shop in town T as a result, that would increase the tax revenue for town T. But the policy can't be formulated/negated based on the shoppers of other states. That's why I think the answer should be B.

can we now have the OA and OE please?
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a. Provides a reasonable explanation of why the experiment worked in town J and why it would not work in town T.
b. Does not provide solid data, only makes an assumption.
c. Out of scope.
d. Does not provide sufficient information about those six other towns to enable clear comparison of town T with those six towns.
e. Out of scope.
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