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31 Jan 2022, 02:30
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
83% (02:00) correct
17%
(02:22)
wrong
based on 192
sessions
History
Date
Time
Result
Not Attempted Yet
In an effort to stimulate economic growth, the parliament of Sapland is promoting new legislation which halves the corporate tax rate. Members of parliament claim the move will lead to job creation and investment by the impacted corporations. Critics disagree vocally, pointing to a plethora of studies indicating that such tax savings tend to be kept as profit rather than reinvested, and therefore are unlikely to spur job creation or corporate investment.
Which of the following, if true, most undermines the critics objection to the tax plan promoted by parliament to spur job creation and corporate investment by halving the corporate tax rate?
A. The legislation halving the corporate tax rate includes a stipulation that funds equal to those owed in the form of taxes must be used by the impacted corporation to promote its primary business purpose.
B. The tax savings will induce the shareholders of many impacted corporations to increase their personal investment portfolios significantly.
C. Many corporate shareholders consider their respective corporations’ performance to be more than sufficient, and see no reason to expand either their workforces or capital investments.
D. The majority of the tax revenue lost due to the corporate tax rate reduction can be reclaimed by raising property taxes on large estates.
E. Sapland currently suffers from high unemployment, brought on by years of government-mandated anti-discrimination policies and environmental regulations.
Which of the following, if true, most undermines the critics objection to the tax plan promoted by parliament to spur job creation and corporate investment by halving the corporate tax rate?
A. The legislation halving the corporate tax rate includes a stipulation that funds equal to those owed in the form of taxes must be used by the impacted corporation to promote its primary business purpose.
B. The tax savings will induce the shareholders of many impacted corporations to increase their personal investment portfolios significantly.
C. Many corporate shareholders consider their respective corporations’ performance to be more than sufficient, and see no reason to expand either their workforces or capital investments.
D. The majority of the tax revenue lost due to the corporate tax rate reduction can be reclaimed by raising property taxes on large estates.
E. Sapland currently suffers from high unemployment, brought on by years of government-mandated anti-discrimination policies and environmental regulations.
31 Jan 2022, 05:17
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Bunuel
Argument
Parliament of S has decided to halve corporate tax to encourage investment and create jobs.
Critics: Tax savings will be kept as profits rather than get reinvested.
Question Type:
Weaken the Critics argument.
A. The legislation halving the corporate tax rate includes a stipulation that funds equal to those owed in the form of taxes must be used by the impacted corporation to promote its primary business purpose. --> If the companies are forced to invest tax saved as per this legislation, then the saved taxes will be reinvested and it will serve Parliament's cause --> CORRECT
B. The tax savings will induce the shareholders of many impacted corporations to increase their personal investment portfolios significantly. --> Shareholders are not discussed and do not form a part of the argument. Also, increase in personal investment portfolios does not do anything to spur job growth or corporate investme--> OUT OF SCOPE --> Wrong
C. Many corporate shareholders consider their respective corporations’ performance to be more than sufficient, and see no reason to expand either their workforces or capital investments. --> Shareholders are not a concern here, Corporates are. Even then, this argument says no job will be created and no expansion in capital investment will happen --> Opposite of what is required --> Wrong
D. The majority of the tax revenue lost due to the corporate tax rate reduction can be reclaimed by raising property taxes on large estates. --> Argument is not about reclaiming lost taxes --> Wrong
E. Sapland currently suffers from high unemployment, brought on by years of government-mandated anti-discrimination policies and environmental regulations --> Thats why growth in jobs and investment is required --> This seems more like a background information rather than a point to prove critics wrong. as this does not impact the Conclusion --> Wrong
14 Jun 2024, 04:01
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