"To increase long-term tax revenue generated by the region’s farms.."- it means govt will impose tax on the revenue generated by ther firms. Now, if Tax rule of Region X is based on profit generated by the firm, then tax revenues varies.
Example 1. If firm accrures no profit -- then there will be no tax to be imposed on that firm.
Example 2. If firm generates profit -- tax will be imposed on the profit resulting tax revenue for Region X.
That what option E denotes.
The argument shows that Region X will generated long-term tax revenue NOT sale tax on transfer of water right. Argument also shows that Region X is interested in generating long term tax revenue. Whereas, transfer of water right is one time transaction. So, we can negate option C.
Example 1. If firm accrures no profit -- then there will be no tax to be imposed on that firm.
Example 2. If firm generates profit -- tax will be imposed on the profit resulting tax revenue for Region X.
That what option E denotes.
The argument shows that Region X will generated long-term tax revenue NOT sale tax on transfer of water right. Argument also shows that Region X is interested in generating long term tax revenue. Whereas, transfer of water right is one time transaction. So, we can negate option C.
Statistics : Posted by SKGM • on 12 Mar 2024, 01:59 • Replies 7 • Views 2107
