The local government is concerned about declining tax revenues due to the recent trend of tech companies moving their headquarters to rural areas. These companies are investing in expensive private jets to facilitate travel for their executives. Since the cost of these jets can be deducted as a business expense, the companies are effectively reducing their taxable income. What can be inferred to weaken the argument that these relocations will harm tax revenues?

Answer Choices

Correct answer marked below

The demand for private jets has led to increased tax revenues for local manufacturers.

Correct

Companies relocating to rural areas are experiencing significant cost savings that offset their travel expenses.

The overall economic impact of tech companies moving is beneficial for the rural areas.

Executives prefer flying in private jets for the flexibility it offers.

The loss of tax revenue from these companies is less than the potential revenue from new businesses moving in.

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Official Explanation

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To weaken the argument that the relocation of tech companies will harm tax revenues, we need to show that the financial impact of these relocations is not as detrimental as suggested. The correct option states that 'The demand for private jets has led to increased tax revenues for local manufacturers.' This implies that while the…

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Comments

SohiniFeb 26, 2025

Thanks for sharingThank you for sharing!!thanks for sharing

HarshDec 8, 2024

This is definitely a test-day trap

RiteshJun 13, 2024

Thankss

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.