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Question Stats:
45% (02:39) correct
54% (02:05) wrong based on 0 sessions
Hi All, Please help me out with the below question with suitable answer. 2. Which of the following best completes the passage below? One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______ (A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress (B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues (C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country (D) the progressive nature of our present tax system is more illusory than real (E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
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Re: 1000 CR Questions [#permalink]
28 Mar 2011, 08:59
venkat18 wrote: Hi All,
Please help me out with the below question with suitable answer.
2. Which of the following best completes the passage below? One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______ (A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress Incorrect: Opposite to what passage states (B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenuesIncorrect:We don't know the tax rates (C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this countryIncorrect:Passage doesn't state anything regarding this (D) the progressive nature of our present tax system is more illusory than realThis is the correct answer it properly follows the passage (E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could beLook at word ANY and eliminate this answer
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Re: 1000 CR Questions [#permalink]
27 Sep 2011, 17:13
I choose "B". However , i understand the above explanation. Please clarify my question below: 1. How do you generally pick the right conclusion?. Since, the premise talks about the flaws of progressive tax system in many places, should the conclusion should also be related to weakening progressive tax system?. I thought the author was under the assumption that flat rate will increase government revenues (Also, premise states the flaws in the progressive tax system). Thanks in Advance
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Re: 1000 CR Questions [#permalink]
27 Sep 2011, 21:37
D
1) Illogical 2) depends, yes it can but can depend on many other factors 3) May be depends whether the flat tax is higher or lower than present for lower income groups. 4) Correct 5) Illogical
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Re: 1000 CR Questions [#permalink]
27 Sep 2011, 22:11
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level.:premise-the pros and cons of flat tax Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. note that there is a change in tone here-the word 'however' signifies that what was assummed previously is not really true. hence the conclusion should be somethoing like:'Therefore, things are not as they seem'---which is more or less what (D) says.
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Re: 1000 CR Questions [#permalink]
05 Oct 2011, 00:26
** Thanks for this! upasanadatta wrote: One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level.:premise-the pros and cons of flat tax Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. note that there is a change in tone here-the word 'however' signifies that what was assummed previously is not really true. hence the conclusion should be somethoing like:'Therefore, things are not as they seem'---which is more or less what (D) says.
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Re: 1000 CR Questions [#permalink]
05 Oct 2011, 07:51
D
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Re: 1000 CR Questions [#permalink]
24 Dec 2011, 09:09
D it is. Nice question and nice explanations by all. Thanks a ton.
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Re: 1000 CR Questions [#permalink]
24 Dec 2011, 10:34
+1 for D
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Re: 1000 CR Questions
[#permalink]
24 Dec 2011, 10:34
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