In the town of Maplewood, the local government is facing a budget deficit for its community center for the second consecutive year. To address this issue, the council has proposed increasing the local entertainment tax from 6% to 9%. While the council believes this is a necessary step to fund community programs, many residents are concerned about the impact on local businesses.

Which of the following, if true, would most undermine the council's plan to alleviate the budget deficit by raising the entertainment tax?

Answer Choices

Correct answer marked below

A significant number of residents prefer to spend their entertainment dollars in neighboring towns where taxes are lower.

The council has not conducted a survey to gauge public opinion on the tax increase.

Local businesses have reported that previous tax increases led to a 20% drop in customer attendance.

Correct

The entertainment tax increase will only apply to events held in the town's largest venue.

The council plans to use the additional revenue to fund a new marketing campaign for local businesses.

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Explanation

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Official Explanation

Official

To determine which statement most undermines the effectiveness of the council's plan, we need to consider the potential negative impact of the tax increase on local businesses. The statement that local businesses have reported that previous tax increases led to a 20% drop in customer attendance directly indicates that raising the entertainment tax could…

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Comments

geekyApr 4, 2025

good question

vanshitaJan 22, 2025

appreciated!

YasaswiJan 1, 2025

cheers!

What this question tests

What it tests

Whether you can identify the option that most undermines an argument's conclusion.

Common trap

Choosing an irrelevant objection or one that attacks the premise rather than the reasoning.