The tax bill passed 2 years ago provides substantial incentives for businesses that move to this area and hire 50 or ...

Sallyanne-Tejan on August 3, 2022

Confusion on Stimulus

I am very confused on this stimulus. It seems like there might be even multiple gaps....or I am just extra lost? How are we supposed to know that Platonica hiring 75 employees does not decrease the government's revenues?

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Emil-Kunkin on August 5, 2022

Hi Sallyanne,

I agree there are multiple gaps here- and since this is a necessary assumption, we only need to find an answer choice that the author must be true- something that if false, would destroy the argument, rather than something that would fix it.

The author argues that the bill has created new jobs, as shown by the fact that pastonica hired 75 new employees. So, the author must think that the bill led the company to hire those new employees. That is, if the company would have hired them anyways, then the bill did not actually lead to the increase in employment. We have no idea if the new jobs led to a decrease in revenue, but I think the incentives that the government gave to companies would have decreased revenue (less taxes=less revenue).