Official Solution:
Candidate for governor: The outgoing governor and his administration have made a mess of our state’s tax laws. Although they have offered necessary tax cuts to small business, they have so complicated it and increased personal income taxes that it is almost better financially to be unemployed than to own a business.
Incumbent governor: On the contrary, the changes to the tax code my administration and I have made have undoubtedly brought new business to our state, thereby increasing overall prosperity. In fact, last year alone three major new manufacturing plants began operations.
The incumbent governor’s response to the candidate’s criticism is flawed because it ....
A. assumes that new manufacturing plants will contribute significantly to revenues in the state.
B. does not assign a dollar amount to the relationship between tax incentives and the attraction of new business.
C. fails to address the candidate’s concern about the tax burden placed on the individual.
D. denies the candidate’s accusation without providing evidence for an alternative conclusion.
E. perpetuates the unfounded assumption that the state will prosper if new business is encouraged.
Situation: A candidate for governor accuses the outgoing governor and his administration of making mistakes with the state’s tax laws. The outgoing governor denies that his administration has made mistakes, and he argues that his administration has rather brought increased prosperity to the state.
Reasoning: The candidate’s complaint is that
personal income taxes have both become more complicated and increased by an unacceptable percentage. While acknowledging tax cuts offered to small business, the candidate apparently does not consider that these advantages outweigh the disadvantages of the administration’s policies on income tax. The governor’s response, however, focuses on prosperity generated from new business and does not directly engage the candidate’s criticism about
personal income taxes. A. The incumbent’s argument actually shares this assumption with the candidate’s argument.
B. While this is true, it is not a flaw in the governor’s argument, because the candidate has not specified a dollar amount himself, nor has he asked the governor to do so.
C. CORRECT. The candidate’s main criticism of the governor’s tax policies is that they have
complicated and increased personal income taxes to the extent that unemployment may be preferable.
D. On the contrary, the governor’s response does provide evidence: the attraction to the state of three new manufacturing plants.
E. This option is similar to option (A); in fact, both the candidate and the governor share the assumption that new business should be encouraged for the overall prosperity of the state.
Answer: C