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A municipal employment training center plans to offer tax deductions for local workers who

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A municipal employment training center plans to offer tax deductions for local workers who take classes that retrain workers in high-tech job skills. Although employing these workers in local jobs that require high-tech skills will generate tax profits that exceed the cost of the tax deductions, this practice is unwise. Local community colleges could offer classes to train students in high-tech job skills without offering these students tax deductions.
 
Which of the following, if true, most strongly supports the training center's policy of offering tax deductions for local workers?
 
 
A. There will be virtually no difference between the future tax profits generated by workers who retrain in high-tech job skills at the training center and those generated by the students who receive retraining in high-tech job skills at community college classes.
B. Over 90 of workers who have completed retraining at the municipal employment training center have gone on to gain employment in high-tech industries, either locally or in neighboring cities.
C. Establishing job skill classes at the retraining center uses substantially less capital stemming from current tax revenues than would establishing classes at the community college.
D. Retrained workers now account for nearly half of the new hires in the municipality, with this number expected to grow, while the hiring rate for untrained workers has stayed constant.
E. The training center offers training in spreadsheets, data entry, multimedia presentations, and other skills that companies rank as most important for their employees to know, as does the community college.
Official Answer
1Comments
this is a tough one!
commented Jan 7, 2015 by Partner (696 points)

3 Answers

4had
1
Ans: C
There must be an Opportunity cost for choosing Local People rather than Community College Students with no tax deduction. Less Cost of training Local People fit That . Thats why C!
answered Jan 7, 2015 by Beginner (13 points)
gagan.oberoi
0
I feel answer is C, because it benefits training center or at least makes the equation same for them ( either pay higher fees at colleges or establish in it in-house at less cost and pay more tax deductions)
answered Jan 7, 2015 by Beginner (11 points)
Jsy Singh
0
Premise : Offer Local Workers Deducations -> Gains from tax collected > Deducations
Conclusions : Unwise, train students without deductions.
In order to strengthen, i think it would still be a better idea if the overall cost of training skilled workers is less than students. I will go C.
Teachers, please help out.
answered Jan 7, 2015 by Senior Associate (437 points)
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