medium · LSAT Logical Reasoning

The argument that high taxes on corporations reduce employment assumes that corporations will pass the costs to employees. Claim [1]: However, if consumer demand remains high, corporations can maintain employment by absorbing the tax into their profit margins. Claim [2]: Many of the largest corporations currently have record-high profit margins that could easily accommodate such taxes. Therefore, the predicted rise in unemployment is not inevitable.

What is the logical role of Claim [2] in the argument?

  1. It supplies an empirical observation that makes the absorption scenario realistic, thereby supporting the closing verdict.
  2. It is the position the author ultimately wants the reader to accept.
  3. It yields a point to those who favor the corporate tax in order to soften the author's stance.
  4. It is a claim the author derives logically from the preceding conditional about consumer demand.
  5. It accurately notes that big firms are highly profitable, but that fact is offered to explain why taxes were proposed in the first place.

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