Critical Reasoning

Some politicians suggest that reducing governmental infrastructure budgets saves money because governments that are spending less on infrastructure can afford to decrease the business tax rate and to create new business districts, which should provide additional tax revenue. However, failing infrastructure, such as deteriorating bridges and highways, often limits transportation, disallowing consumers from easily accessing current business districts, let alone new business districts, which are often located further from residential areas. Such transportation problems significantly reduce the income of, and the taxes paid by, companies both within and outside of any new business district.

The author is arguing that _________.


(A) deteriorating bridges and highways will discourage businesses from moving into a new business district

(B) cutting infrastructure budgets to save money can result in an overall decrease in revenue

(C) deteriorating infrastructure in business districts will eventually be replaced by new infrastructure

(D) major losses in revenue for both business and government will be offset by the decrease in the business tax rate

(E) politicians are concerned with balancing the competing demands of both business and government