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Vorland’s government is planning a nationwide ban on smoking in restaurants. The objection that the ban would reduce restaurants’ revenues is ill founded. Several towns in Vorland enacted restaurant smoking restrictions five years ago. Since then, the amount the government collects in restaurant meal taxes in those towns has increased 34 percent, on average, but only 26 percent elsewhere in Vorland. The amount collected in restaurant meal taxes closely reflects restaurants’ revenues.
Which of the following, if true, most undermines the defense of the government’s plan?
A. When the state first imposed a restaurant meal tax, opponents predicted that restaurants’ revenues would decline as a result, a prediction that proved to be correct in the short term.
B. The tax on meals in restaurants is higher than the tax on many other goods and services.
C. Over the last five years, smoking has steadily declined throughout Vorland.
D. In many of the towns that restrict smoking in restaurants, restaurants can maintain separate dining areas where smoking is permitted.
E. Over the last five years, government revenues from sales taxes have grown no faster in the towns with restaurant smoking restrictions than in the towns that have no such restrictions.
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E. Over the last five years, government revenues from sales taxes have grown no faster in the towns with restaurant smoking restrictions than in the towns that have no such restrictions.
This proves that restriction/lack of restriction has no impact on revenue, hence it undermines the original defense that tax revenue will go up when restriction is imposed.
(D) for me. I easily eliminated (E). I may be wrong, but here are my thoughts:
The argument says that the govt gets more money (revenue) in those restaurants in vorland where smoking is banned and this, IMO, is what we should target to undermine/refute.
(E) says that govt rev. from sales tax have been equal, ban or no ban. This does not directly undermine the argument above.
(D) however, seems to do so because it gives us a probable reason why the revenues generated in those areas are higher. maybe more people go to these restaurants since they are allowed to smoke in a separate room.
I would have answered D but after seeing other people choosing answer E I have doubts However D is more related to the ban itself than the revenues, so I choose D
The question is Which of the following, if true, most undermines the defense of the government’s plan?
Govt's plan is imposing a ban on smoking in restaurants. The defense of Govt is that the taxes have increased in towns where there was a ban. And since taxes are reflective of revenues of restaurants, revenues have also increased. Our task is to weaken this defense.
2 ways to refute this
1. Either prove that tax amount has increased in spite of revenue decrease
2. The ban was not implemented properly.
Since D satisfies the 2nd case. D should be the answer.
A- Out since it is irrelevant
B- Out since it is irrelevant
C- out. It is consistent but does not undermine the plans
D- clearly tells that Smoking was not banned completey & hence it may contribute to the revenue. This undermines the defense. Hence Correct
E- Sales Tax seems to be too generic. Meal taxes would have been an apt usage.
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