Free Practice Question
CR · Critical Reasoning
555-605
Weaken
For the fourth consecutive year, the city of Rivertown is facing a deficit in its educational funding. The city council has suggested raising the funds needed by increasing the meals tax imposed on local eateries from 6 to 8.5 percent. While it is crucial to secure additional resources for Rivertown's schools, the city council's current strategy may be misguided. A considerable portion of Rivertown's dining customers are visitors, who will not benefit from enhancements to the local education system.
Which of the following, if true, would most undermine the city council's plan to resolve the Rivertown school funding deficit by increasing the local meals tax?
Which of the following, if true, would most undermine the city council's plan to resolve the Rivertown school funding deficit by increasing the local meals tax?
Answer Choices
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A. The last time the meals tax was increased in Rivertown, restaurants experienced a 20 percent drop in sales in the year following the hike, while those in adjacent cities saw gains of up to 30 percent.
B
B. The Rivertown Chamber of Commerce, which includes many local restaurant owners, is vocally against the tax increase.
C
C. To enforce the new tax rate, the city will need to hire extra staff to audit restaurant tax submissions.
D
D. According to city regulations, any tax hike must be approved by a public referendum, potentially postponing the tax's implementation by several months.
E
E. Managers of local franchise restaurants are unable to change menu prices without authorization from their corporate offices.
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H
HarshavMar 22, 2025
Thank you very much!
Details
Difficulty
555-605
Type
CR