GRE Essay Topic 909 - The following appeared as part of an article in a local Beauville newspaper. "According to a government report, last year the city of Dillton reduced its corporate tax rate by 15 percent; at the same time, it began offering relocation grants and favorable rates on city utilities to any company that would relocate to Dillton. Within 18 months, two manufacturing companies moved to Dillton, where they employ a total of 300 people. Therefore, the fastest way for Beauville to stimulate economic development and hence reduce unemployment is to provide tax incentives and other financial inducements that encourage private companies to relocate here. " Discuss how well reasoned you find this argument.
Stimulate economic by taxation
The author concluded that the best way to stimulate economice development and reduce unemplyment is to provide tax incentives to encourage private companies to relocate.But this aurgmet is flawed at least from 2 ways. First,it is not necessiry that the effect of tax reduction will be more economic development as the paragraph mentioned. Second,The writter provided statistics not resprenting the whole sample and draw conclusions based on them.
For the 1st reason, the underlying assumption in the text is that the effect of lowering tax rate is more economic development. In reality, the effect has many forms, One of them could lead to more economic develoment as the paragraph stated. However, Other results can lead to differnt outcomes. It denends on many factors not mentioned in the essay. In the past, there were many cases in which the government decreased tac rate but the net effect was more stagnation than before. Moreover, there is no clear identification of the total number of jobs needed for the city. As if the town needed huge amount of jobs openings, even sucssful implementation of tax rate lowering many not lead to accomplishing of great sucsses. As a result, this aurgment is not strongly supporting the final conclusion.
For the second reason, the eassay said that 2 manfacturing comanies had moved to delton. But, is this a true sample of what really happned? To what extent these 2 comanies were a true repsesentation of the ecoomic status in the town. For sure, the working comanies in the towen are in hundereds, or even in thousands. Since the author didnt provide any further infamtion regarding the numbers of working comanies, the sample was not a true repsresnation of the society. Moreover, may be there were a differnt explanations why those companies had moved other than lowering tax rate. So, statstics mentioned in the essay don’t support the final conclusion.
As we have Discused, the currrent form of essay is filled with many weak evidence for a very strong conclusion. The effect of lowering tax rate is unpredeictable and the sample he provided was nor representative. For these reasons, the essay is flawed.