Free Practice Question
CR · Critical Reasoning
555-605
Weaken
State revenues from the corporate income tax are at risk due to the recent trend of companies moving their headquarters to suburban areas. Many of these companies are investing in expensive fleets of executive vans to transport their staff to and from the more distant suburbs. Since the expenses incurred for these vehicles can be deducted from their gross corporate income, these companies end up paying less in taxes to the state. We need to take measures to prevent the loss of these essential tax revenues.
Which of the following, if true, most undermines the reasoning on which the argument is based?
Which of the following, if true, most undermines the reasoning on which the argument is based?
Answer Choices
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A) The increased costs of transporting personnel are balanced by other financial benefits at the new suburban headquarters.
B
B) The tax revenue lost from companies relocating will be greater than any revenue gained if vehicle purchases are limited.
C
C) The state's vehicle manufacturers benefit from increased taxes due to the higher demand for executive vans.
D
D) Executives favor the comfort of traveling in a luxury van with a chauffeur.
E
E) The movement of corporations to suburban areas creates significant economic challenges for cities.
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L
LavnishFeb 15, 2025
Great
Details
Difficulty
555-605
Type
CR