TOPIC: ARGUMENT237 - 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."
WORDS: 419 TIME: 00:48:18 DATE: 2010/3/29 22:50:44
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It is true that sometimes tax incentives and financial inducements are powerful tools to stimulate economics. But they all have opposite effect too. This argument falls to persuade us that Beauville should adepted these policies just based on the case of Dillton.
First of all, the author doesn't provide any evidence to show that these two city have any simularity. Each human individual has his or her own charecteristics and features, so as cities. Some cites are famous for their splandid landview, such as GuiLin in China and Hawai in U.S. which is known for its breathtaking seaview. So to these kinds of cities, the major industry will be tourism. But the city like New York or Tokyo is focus on bussiness and politics. For each different cities, the problem will be differnt as well. Based on the exist information, we couldn't know Dillton and Beauville are compareable. So the financial levedge as tax and inducements may work in Dillton, but the same effect might not take place in Beauville.
Even if we boldly assume that Dillton and Beaucille are concentrate on same main industry and these two cities are comparable at most level. The effect of financial levedge is still questionable. Even though the author provide us sufficient statistics to show the situation in Dillto, we couldn't find any data information about Beauville. Without which, we shouldn't draw out that tax reduce and financial inducements actually do positive effect for local economics. Maybe, even though Beauville doesn't implement these financial policies, its economics still goes strong and even better. If the arguer falls to take in to this aspect in to account, we couldn't trust possitive effect of financial levedge so hasty.
Finally, let's dig little more from statistics. We see that after the tax reduce and other financial inducement be impled , there were tow manufacturing companies move to Dillton, but it toke one and half years , which isn't a short scale of time. The economic situation can be totally different in 18 months. Even if the policies did work before, the author doesn't provide us any evidence to show this kinds of financial tools is utilized today.
To sum up, in order to persuade us that the financial policies as tax incentives and other financial inducemtns will simulate the local economics in Beauville, the author should give us more information to show that first the two different cities are comaprable , second the financial polices do have possitive effect and still useful in nowaday's situation.
It is true that sometimes tax incentives and financial inducements are powerful tools to stimulate economics. But they all have opposite effect too. This argument falls to persuade us that Beauville should adeptedadapted
these policies just based on the case of Dillton.
First of all, the author doesn't provide any evidence to show that these two city have any simularitysimilarity. Each human individual has his or her own charecteristicscharacteristics and features, so as cities. Some cites are famous for their splandid (splendid)landview(land view), such as GuiLinGuilin in China and HawaiHawaii in U.S. which is known for its breathtaking seaviewsea view. So to these kinds of cities, the major industry will be tourism. But the city like New York or Tokyo is focus on bussinessbusiness and politics. For each different cities, the problem will be differntdifferent as well. Based on the existexits information, we couldn't know Dillton and Beauville are compareablecomparable. So the financial leverage levedge as tax and inducements may work in Dillton, but the same effect might not take place in Beauville.
Even if we boldly assume that Dillton and Beaucille are concentrate on same main industry and these two cities are comparable at most level. The effect of financial levedge is still questionable. Even though the author provide us sufficient statistics to show the situation in Dillto, we couldn't find any data information about Beauville. Without which, we shouldn't draw out that tax reduce and financial inducements actually do positive effect for local economics. Maybe, even though Beauville doesn't implement these financial policies, its economics still goes strong and even better. If the arguer falls to take in to this aspect in to account, we couldn't trust possitive effect of financial levedge leverage so hasty.
Finally, let's dig little more from statistics. We see that after the tax reduce and other financial inducement be impled practicsed , there were towtwo manufacturing companies move to Dillton, but it toke one and half years , which isn't a short scale of time. The economic situation can be totally different in 18 months. Even if the policies did work before, the author doesn't provide us any evidence to show this kinds of financial tools is utilized today.
To sum up, in order to persuade us that the financial policies as tax incentives and other financial inducemtnsinducements will simulate the local economics in Beauville, the author should give us more information to show that first the two different cities are comaprablecomparable , second the financial polices do have possitivepositive effect and still useful in nowaday'snowadays’ situation.