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According to the Department of Social Services, new taxes

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According to the Department of Social Services, new taxes [#permalink] New post 28 Apr 2013, 22:29
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Question Stats:

64% (02:42) correct 36% (01:54) wrong based on 176 sessions
According to the Department of Social Services, new taxes need to be generated to maintain the solvency of the state's Medical Aid program, which provides medical coverage for the state's poor and uninsured residents. The governor has proposed that a special tax be imposed on those with incomes greater than $300,000 a year to pay for the shortfalls in the Medical Aid program. While new revenues are indeed needed to maintain the Medical Aid program's solvency, the governor's plan for securing the needed funds should be rejected because it would force certain taxpayers to absorb the cost for something from which they would receive no benefit.

Which of the following, if true, would cast the most doubt on the feasibility of the governor's plan to maintain the solvency of the state's Medical Aid program?

A. Before any such tax increase can be imposed, the state is required by law to hold hearings at which objections to the proposed tax hike can be raised.

B. Imposing a special tax will fail to address the underlying causes for the increasing costs to maintain the state's Medical Aid program or the increasing number of uninsured residents in the state.

C. In recent years, changes to the Medical Aid funding formula have shifted much of the burden for maintaining the program from the federal government to state governments.

D. Those with incomes greater than $300,000 a year represent a powerful political constituency in the state and previous attempts to impose tax increases on this group have been blocked by the state legislature.

E. Other states that have tried to impose similar targeted tax increases to maintain the solvency of their Medical Aid programs have met with mixed success.


Personally I am not sure about the OA. welcome all your comments.
[Reveal] Spoiler: OA
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Re: According to the Department of Social Services, new taxes ne [#permalink] New post 28 Apr 2013, 23:45
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nave81 wrote:
According to the Department of Social Services, new taxes need to be generated to maintain the solvency of the state's Medical Aid program, which provides medical coverage for the state's poor and uninsured residents. The governor has proposed that a special tax be imposed on those with incomes greater than $300,000 a year to pay for the shortfalls in the Medical Aid program. While new revenues are indeed needed to maintain the Medical Aid program's solvency, the governor's plan for securing the needed funds should be rejected because it would force certain taxpayers to absorb the cost for something from which they would receive no benefit.

Which of the following, if true, would cast the most doubt on the feasibility of the governor's plan to maintain the solvency of the state's Medical Aid program?


Weaken the argument. Which of the below would hamper (not only influence) the feasibility of governor's plan?
Quote:
A. Before any such tax increase can be imposed, the state is required by law to hold hearings at which objections to the proposed tax hike can be raised.

The objections can be raised, but not necessarily will be. A) informs us only about the formal procedure, but suggests no objections to the plan.
Quote:
B. Imposing a special tax will fail to address the underlying causes for the increasing costs to maintain the state's Medical Aid program or the increasing number of uninsured residents in the state.

Adressing the underlying causes is not the issue in question. This is out of scope.
Quote:
C. In recent years, changes to the Medical Aid funding formula have shifted much of the burden for maintaining the program from the federal government to state governments.

It is irrelevant, who is burdened with the funding. Out of scope.
Quote:
D. Those with incomes greater than $300,000 a year represent a powerful political constituency in the state and previous attempts to impose tax increases on this group have been blocked by the state legislature.

Those with incomes greater than $300,000 a year are subject to the plan. If the plan is against their interest, and if they are capable of thwarting the plan, they logically will defend their own interest by thwarting the plan. D informs us that they are capable of thwarting the plan, and have already done it once at that! They are likely do it again. This is the answer.
Quote:
E. Other states that have tried to impose similar targeted tax increases to maintain the solvency of their Medical Aid programs have met with mixed success.

This is a well known GMAC's trap answer. It is always irrelevant, what happened in other locations/to other people/etc.

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Last edited by HumptyDumpty on 28 Apr 2013, 23:48, edited 1 time in total.
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Re: According to the Department of Social Services, new taxes ne [#permalink] New post 28 Apr 2013, 23:48
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IMO, D is correct.

Because this is weaken question, we should attack the conclusion. What is the conclusion here? The question stem tells us the conclusion.

Premise: new taxes need to be generated to maintain the solvency of the state's Medical Aid program
Premise: special tax be imposed on those with incomes greater than $300,000 a year
Conclusion: the governor's plan to maintain the solvency of the state's Medical Aid program is feasible.

Assumption: Ask yourself what is feasibility? Feasibility is that the governor's plan can create cash inflow from tax increase. Hence, the assumption is those with incomes greater than $300,000 a year will pay a special tax. If they won't pay tax, the governor's plan fails.

CONSIDER EACH ANSWER:

A. Before any such tax increase can be imposed, the state is required by law to hold hearings at which objections to the proposed tax hike can be raised.
WRONG. Out of scope

B. Imposing a special tax will fail to address the underlying causes for the increasing costs to maintain the state's Medical Aid program or the increasing number of uninsured residents in the state.
WRONG. Shell game. The conclusion is to focus on how to increase revenue from the new tax plan, not on causes for the increasing costs or the increasing number of uninsured residents.

C. In recent years, changes to the Medical Aid funding formula have shifted much of the burden for maintaining the program from the federal government to state governments.
WRONG. Out of scope.

D. Those with incomes greater than $300,000 a year represent a powerful political constituency in the state and previous attempts to impose tax increases on this group have been blocked by the state legislature.
CORRECT. D says that people who have incomes greater than $300,000 a year will not have to pay tax because they will prevent state legislature from approving the new tax plan.

E. Other states that have tried to impose similar targeted tax increases to maintain the solvency of their Medical Aid programs have met with mixed success.
WRONG. Out of scope.

Hope it helps.

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Re: According to the Department of Social Services, new taxes [#permalink] New post 30 Apr 2013, 01:52
Hello Experts...
What is a good time frame to answer a question of this level? Assuming ones aiming for the higher 40's?

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Re: According to the Department of Social Services, new taxes [#permalink] New post 30 Apr 2013, 04:09
What do you mean "Assuming ones aiming for the higher 40's?"? Good timing is the one shown on the clock: 02:18 on average for correct answers.

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Re: According to the Department of Social Services, new taxes [#permalink] New post 30 Apr 2013, 05:06
What i meant was if one is aiming at a score of 45+. I'm currently able to do stick to an average of 30-45secs lesser and was wondering what would be a good strategy for the long run. Spend more time on questions and get more accurate or aim for doing more questions

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Economist GMAT Test - 730, Q50, V41 Aug 9th, 2013
Manhattan GMAT Test - 670, Q45, V36 Aug 11th, 2013
Manhattan GMAT Test - 680, Q47, V36 Aug 17th, 2013
GmatPrep CAT 1 - 770, Q50, V44 Aug 24th, 2013
Manhattan GMAT Test - 690, Q45, V39 Aug 30th, 2013
Manhattan GMAT Test - 710, Q48, V39 Sep 13th, 2013
GmatPrep CAT 2 - 740, Q49, V41 Oct 6th, 2013

GMAT - 770, Q50, V44, Oct 7th, 2013
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Re: According to the Department of Social Services, new taxes [#permalink] New post 30 Apr 2013, 05:28
Hi,

Here is a really great guide to timings overall

timing-strategies-on-the-gmat-80176.html

My $0.02 as someone who managed what you're striving for is that if you're that good (99%) on Verbal then you're going to be pretty strong at all parts and have no big weakness. So in that case you need to be nailing every question, so I took the approach of taking my time on each question, under the assumption that you'll get 2 or 3 easy ones (for someone aiming at this level) that can allow you to play catch up.

If you're aiming for a lower level, this does not really apply, as pacing to hit the end becomes more of a help.

JAmes

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Re: According to the Department of Social Services, new taxes [#permalink] New post 13 Aug 2013, 04:00
I was a little confused between B and D, but the reason that I eliminated D is: - just because the previous attempts have been blocked by the legislature doesn't mean that it will happen this time in this particular case

As I eliminated D, I chose the option B though I wasn't convinced about B. Simply, I was completely convinced that D was wrong for the above reason, hence I chose the option B.

I request for some help on my thinking process and for some comments on my reasoning for option D.
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Re: According to the Department of Social Services, new taxes [#permalink] New post 13 Aug 2013, 06:36
nave81 wrote:
According to the Department of Social Services, new taxes need to be generated to maintain the solvency of the state's Medical Aid program, which provides medical coverage for the state's poor and uninsured residents. The governor has proposed that a special tax be imposed on those with incomes greater than $300,000 a year to pay for the shortfalls in the Medical Aid program. While new revenues are indeed needed to maintain the Medical Aid program's solvency, the governor's plan for securing the needed funds should be rejected because it would force certain taxpayers to absorb the cost for something from which they would receive no benefit.

Which of the following, if true, would cast the most doubt on the feasibility of the governor's plan to maintain the solvency of the state's Medical Aid program?

A. Before any such tax increase can be imposed, the state is required by law to hold hearings at which objections to the proposed tax hike can be raised.

B. Imposing a special tax will fail to address the underlying causes for the increasing costs to maintain the state's Medical Aid program or the increasing number of uninsured residents in the state.

C. In recent years, changes to the Medical Aid funding formula have shifted much of the burden for maintaining the program from the federal government to state governments.

D. Those with incomes greater than $300,000 a year represent a powerful political constituency in the state and previous attempts to impose tax increases on this group have been blocked by the state legislature.

E. Other states that have tried to impose similar targeted tax increases to maintain the solvency of their Medical Aid programs have met with mixed success.


Personally I am not sure about the OA. welcome all your comments.



Hi ,

Can someone please help me understand what the question is about ? feasibility of the governor's plan to maintain the solvency of the state's Medical Aid program? Is this question about whether the plan can be implemented or whether the plan if implemented will have its desired output of helping the medical aid program ?

I chose D over B because I thought if the plan can actually be stopped from being implemented then it would weaken the argument.

Is my understanding correct ?

Appreciate your help.:)

Thanks,
Sandeep.
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Re: According to the Department of Social Services, new taxes [#permalink] New post 22 Jun 2014, 00:42
Hi all,

I don't know if its just me but the conclusion as mentioned in the question stem doesn't quite make sense?

If I read the sentence without reading the question stem, I would say the conclusion is "the governor's plan for securing the needed funds should be rejected". Please let me know if there is a gap in my understanding of the stimulus?

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Re: According to the Department of Social Services, new taxes   [#permalink] 22 Jun 2014, 00:42
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