Vorland’s government is planning a nationwide ban on smoking in restaurants.
The objection that the ban would reduce restaurants’ revenues is ill founded.
Several towns in Vorland enacted restaurant smoking restrictions five years
ago. Since then, the amount the government collects in restaurant meal taxes
in those towns has increased 34 percent, on average, but only 26 percent
elsewhere in Vorland. The amount collected in restaurant meal taxes closely
reflects restaurants’ revenues.
Which of the following, if true, most undermines the defense of the
government’s plan?
A) When the state first imposed a restaurant meal tax, opponents predicted that
restaurants’ revenues would decline as a result, a prediction that proved to
be correct in the short term.
B) The tax on meals in restaurants is higher than the tax on many other goods
and services.
C) Over the last five years, smoking has steadily declined throughout Vorland.
D) In many of the towns that restrict smoking in restaurants, restaurants can
maintain separate dining areas where smoking is permitted.
E) Over the last five years, government revenues from sales taxes have grown no
faster in the towns with restaurant smoking restrictions than in the towns
that have no such restrictions.
Answer: Not sure!!