Bunuel
The practice of granting local tax rebates to businesses on the condition that they maintain offices or factories in the community usually leads to higher overall tax revenues for the community.
All of the following, if true, would tend to support the statement above EXCEPT:
A. Tax rebates contribute significantly, on average, to a business ’s success or failure in a community.
B. Businesses in a community usually attract workers and other tax-paying citizens to the nearby area.
C. Overall tax revenues in a community generally rise in proportion to increased levels of business activity within the community.
D. Workers employed by local businesses usually spend money in the community, thus increasing sales tax revenues in the area.
E. An office or factory in a community leads to increased demand for the goods and services produced by other local tax-paying businesses.
Prethinking:
The argument is concerned with overall tax revenues for the community, so we're looking for an option that either criticizes or has no impact on argument that local tax rebates should be given to businesses on the basis of the condition as mentioned in the passage.
Process of Elimination:
A. Correct. Success or failure of the business in a community is not in the scope of the argument, so this statement has no impact on the argument.
B. Wrong. This option defends the argument by pointing how businesses can generate higher tax revenues.
C. Wrong. This option also strengthens the argument by suggesting that higher the business activity, higher are the tax revenues.
D. Wrong. Clearly, this option supports the argument.
E. Wrong. The statement is in the favour of the argument by informing that an office or factory in a community increases the business activities of local tax-paying businesses, generating more tax revenue as a result.[/quote]