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A final problem with the argument involves Grandview's willingness to forego payment of
property taxes for the first three years. Admittedly, this evidence lends some measure of
support to the recommendation. However, the president ignores the possibility that other cities
under consideration would be willing to make similar concessions, or provide other equally
attractive financial incentives. The president also overlooks the expense of property taxes over
the longer term. Lacking evidence to the contrary, it is entirely possible that Grandview's
property-tax rates are otherwise comparatively high, and that in the longer term Viva-Tech's
property-tax liability would be greater in Grandview than in other locales. Until the president
accounts for these two possibilities, I cannot be persuaded that Grandview is the best location
for Viva-Tech from a property-tax stand-point.
In the final analysis, the recommendation of Viva-Tech's president is not well supported. To
strengthen it the president must provide detailed demographic evidence showing that a
sufficient number of Grandview residents would be able and willing to work in Viva Tech's
high-tech environment. A proper evaluation of the recommendation requires more information
about Grandview's property-tax rates vis-a-vis those of other locales under consideration, and
about the willingness of these other municipalities to provide their own financial or tax
incentives to Viva-Tech.
Argument 23
The following appeared in a memo from the mayor of the town of Hopewell.
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