Free Practice Question
CR · Critical Reasoning
555-605
Weaken
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
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The demand for private jets has led to increased tax revenues for local manufacturers.
B
Companies relocating to rural areas are experiencing significant cost savings that offset their travel expenses.
C
The overall economic impact of tech companies moving is beneficial for the rural areas.
D
Executives prefer flying in private jets for the flexibility it offers.
E
The loss of tax revenue from these companies is less than the potential revenue from new businesses moving in.
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S
SohiniFeb 26, 2025
Thanks for sharingThank you for sharing!!thanks for sharing
Details
Difficulty
555-605
Type
CR