Vorland s government is planning a nationwide ban on smoking
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20 Oct 2023, 11:57
Understanding the argument -
As GMATNinja also pointed out, the government plans to introduce a Ban and give an example of Restrictions. It is comparing apples to oranges. Moreover, the author assumes that no other cause could have pushed the tax increase. So, if we have any alternate reason that explains the increase in taxes, it will also weaken the reasoning.
Option Elimination -
(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. - it does not matter. Out of scope.
(B) The tax on meals in restaurants is higher than the tax on many other goods and services. - but we need to understand the increase. If the meal tax is higher, that will not explain the percent increase. Distortion.
(C) Over the last five years, smoking has steadily declined throughout Vorland. It doesn't matter. Out of scope.
(D) In many of the towns that restrict smoking in restaurants, restaurants can maintain separate dining areas where smoking is permitted. Ok. There was necessarily no impact of restrictions, but if the Ban is imposed, then these extra dining spaces have to be eliminated.
(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. - We are talking about the increase in tax on restaurants. General sales tax comparison: we don't care. Out of scope.