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237.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."
In this argument, the author asserts that Beauville should take some proper measures such as providing tax incentives and other financial inducements, which is sure to bring about relocation of private companies, to enhance employment and stimulate economic development. To support his assertion the author cites the evidence that there are two manufacturing companies attracted to relocate to Dillton since this city lower its corporate tax rate by 15 percent and supply any company which move to Dillton with relocation grants and favorable rates on city facilities, employing 300 people. As the following discussion shows, the author's argument is not well supported by the evidence.
First and foremost, it is highly possible that the very two manufacturing companies are not one of the results of the new governmental policies. Perhaps the companies' product is milchigs which require milk and people who will buy it so that they need to be established nearby their raw material or consumers. Another possible reason is that there may be other inherent predominance in Dillton, such as lower transport costs, and better living environment for employees, which ultimately lead to the relocation.
Besides, the author fails to take into consideration that there can be many discrepancies between Dillton and Beauville, such as geographical features, level of development, and the intrinsic culture of respective inhabitants, which can give rise to entirely different outcomes even if they adopt the same measures. It is possible that the developmental level of Beauville can not allow the reduction of corporate tax rate. What's more, in Dillton, the corporate tax rate before decreased by 15 percents is unknown, which may still higher than the rate of Beauville after the decrease.
Last but not least, the author fails to consider and rule out other factors that might account for the reason why Beauville has a low economic development and employment. It is absolutely possible that the education of this city is not regarded as important and is so disappointing, which partly leads to the unemployment. In addition, possible high criminal rate or other bad circumstances can preclude extraneous businessmen from establishing new companies here. On the other hand, employment in Dillton is unnecessarily raised due to the only 300 people, some of whom may already had jobs before, being hired.
In summary, the author unfairly asserts that Beauville should reduce its corporate tax and provide relocation grants and favorable rates on city utilities for prospective relocating companies as a measure of stimulating economic development and reducing unemployment. To bolster it the author must provide clear evidence that all the advancement in Dillton the result of new policies and the implementation of the same measures will surly generate the same outcomes. |
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