Posted: Sat Apr 28, 2007 4:20 am Post subject: prep test : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 17 Jan 2017, 12:33

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Posted: Sat Apr 28, 2007 4:20 am Post subject: prep test

Author Message
TAGS:

### Hide Tags

Manager
Joined: 30 Mar 2007
Posts: 180
Followers: 1

Kudos [?]: 35 [0], given: 0

Posted: Sat Apr 28, 2007 4:20 am Post subject: prep test [#permalink]

### Show Tags

12 May 2007, 15:37
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

Posted: Sat Apr 28, 2007 4:20 am Post subject: prep test

--------------------------------------------------------------------------------

In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similary programs.

Which of the following, if true, would most contribute to an explanation of the economists' projections.

A. Tax amnesty programs are only successful if they are widely publicized.
B. Most people who honestly pay their state tax are equally honest in paying their federal tax.
C. Although federal tax delinquents usually must pay high financial penalties, the states require far lower financial penalties.
D. The state tax rate varies considerably from state to state, but the federal tax is levied according to laws which apply to citizens of all the states.
E. Unlike most federal tax deliquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.

I cant seem to understand why the answer is E
If you have any questions
New!
 Economist GMAT Tutor Discount Codes Kaplan GMAT Prep Discount Codes Veritas Prep GMAT Discount Codes
Director
Joined: 26 Feb 2006
Posts: 904
Followers: 4

Kudos [?]: 107 [0], given: 0

### Show Tags

12 May 2007, 17:24
Jamesk486 wrote:
Posted: Sat Apr 28, 2007 4:20 am Post subject: prep test

--------------------------------------------------------------------------------

In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similary programs.

Which of the following, if true, would most contribute to an explanation of the economists' projections.

A. Tax amnesty programs are only successful if they are widely publicized.
B. Most people who honestly pay their state tax are equally honest in paying their federal tax.
C. Although federal tax delinquents usually must pay high financial penalties, the states require far lower financial penalties.
D. The state tax rate varies considerably from state to state, but the federal tax is levied according to laws which apply to citizens of all the states.
E. Unlike most federal tax deliquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.

I cant seem to understand why the answer is E

federal tax deliquency - intentional or some other financial reasons.
state tax deliquency - not intentional or no financial reasons.

if that is the case, then state tax deliquents (who can pay) are most likely to pay than the federal tax deliquents (who probably cannot pay).

So E.
Re: prep cr question   [#permalink] 12 May 2007, 17:24
Similar topics Replies Last post
Similar
Topics:
Wondering if any *new* questions will be posted?? 0 02 Jul 2010, 12:20
3 Lsat 28 1.20 5 03 Sep 2009, 01:00
LSAT PREP 28 #3 3 02 Sep 2009, 16:01
Pardon me if the post is duplicate. I am a new user in this 7 15 Feb 2007, 14:39
Display posts from previous: Sort by