PrepTest 41, Section 3, Question 16
Editorialist: Some people propose that, to raise revenues and encourage conservation, our country's taxes on oil, gasoline, and coal should be increased. Such a tax increase, however, would do more harm than good. By raising energy costs, the tax increase would decrease our competitiveness with other countries. Many families would be unfairly burdened with higher transportation costs. Finally, by reducing the demand for energy, the tax increase would reduce the number of energy production jobs.
Editorialist: Some people propose that, to raise revenues and encourage conservation, our country's taxes on oil, gasoline, and coal should be increased. Such a tax increase, however, would do more harm than good. By raising energy costs, the tax increase would decrease our competitiveness with other countries. Many families would be unfairly burdened with higher transportation costs. Finally, by reducing the demand for energy, the tax increase would reduce the number of energy production jobs.
Editorialist: Some people propose that, to raise revenues and encourage conservation, our country's taxes on oil, gasoline, and coal should be increased. Such a tax increase, however, would do more harm than good. By raising energy costs, the tax increase would decrease our competitiveness with other countries. Many families would be unfairly burdened with higher transportation costs. Finally, by reducing the demand for energy, the tax increase would reduce the number of energy production jobs.
Editorialist: Some people propose that, to raise revenues and encourage conservation, our country's taxes on oil, gasoline, and coal should be increased. Such a tax increase, however, would do more harm than good. By raising energy costs, the tax increase would decrease our competitiveness with other countries. Many families would be unfairly burdened with higher transportation costs. Finally, by reducing the demand for energy, the tax increase would reduce the number of energy production jobs.
Each of the following, if true, would weaken the editorialist's argument EXCEPT:
The editorialist's country's budget deficit will decrease if the energy tax increase is implemented, thus benefiting the economy.
Higher gasoline prices tend to lead to a cleaner environment, because people do less nonessential driving.
The proposed tax increase would be larger for some energy sources than for others.
Higher gasoline prices will encourage people to carpool, which will reduce individual transportation costs.
The government would use the increase in tax revenue to create many more jobs than would be lost in the energy production sector.
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