According to the Department of Social Services, new taxes : GMAT Critical Reasoning (CR)
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# According to the Department of Social Services, new taxes

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Manager
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According to the Department of Social Services, new taxes [#permalink]

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28 Apr 2013, 22:29
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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.

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Re: According to the Department of Social Services, new taxes ne [#permalink]

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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. _________________ If I answered your question with this post, use the motivating power of kudos! Last edited by HumptyDumpty on 28 Apr 2013, 23:48, edited 1 time in total. Verbal Forum Moderator Joined: 15 Jun 2012 Posts: 1153 Location: United States Followers: 259 Kudos [?]: 2861 [1] , given: 123 Re: According to the Department of Social Services, new taxes ne [#permalink] ### Show Tags 28 Apr 2013, 23:48 1 This post received KUDOS 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. _________________ Please +1 KUDO if my post helps. Thank you. "Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong." Chris Bangle - Former BMW Chief of Design. Current Student Joined: 24 Nov 2012 Posts: 177 Concentration: Sustainability, Entrepreneurship GMAT 1: 770 Q50 V44 WE: Business Development (Internet and New Media) Followers: 42 Kudos [?]: 278 [0], given: 73 Re: According to the Department of Social Services, new taxes [#permalink] ### Show Tags 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? _________________ You've been walking the ocean's edge, holding up your robes to keep them dry. You must dive naked under, and deeper under, a thousand times deeper! - Rumi http://www.manhattangmat.com/blog/index.php/author/cbermanmanhattanprep-com/ - This is worth its weight in gold 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 My Debrief - http://gmatclub.com/forum/from-the-ashes-thou-shall-rise-770-q-50-v-44-awa-5-ir-162299.html#p1284542 Manager Joined: 12 Dec 2012 Posts: 162 Location: Poland Followers: 5 Kudos [?]: 175 [0], given: 67 Re: According to the Department of Social Services, new taxes [#permalink] ### Show Tags 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. _________________ If I answered your question with this post, use the motivating power of kudos! Current Student Joined: 24 Nov 2012 Posts: 177 Concentration: Sustainability, Entrepreneurship GMAT 1: 770 Q50 V44 WE: Business Development (Internet and New Media) Followers: 42 Kudos [?]: 278 [0], given: 73 Re: According to the Department of Social Services, new taxes [#permalink] ### Show Tags 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 _________________ You've been walking the ocean's edge, holding up your robes to keep them dry. You must dive naked under, and deeper under, a thousand times deeper! - Rumi http://www.manhattangmat.com/blog/index.php/author/cbermanmanhattanprep-com/ - This is worth its weight in gold 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 My Debrief - http://gmatclub.com/forum/from-the-ashes-thou-shall-rise-770-q-50-v-44-awa-5-ir-162299.html#p1284542 Senior Manager Joined: 07 Nov 2012 Posts: 346 Schools: LBS '14 (A) GMAT 1: 770 Q48 V48 Followers: 191 Kudos [?]: 366 [0], given: 4 Re: According to the Department of Social Services, new taxes [#permalink] ### Show Tags 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.

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Re: According to the Department of Social Services, new taxes [#permalink]

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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]

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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.

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 ?

Thanks,
Sandeep.
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Re: According to the Department of Social Services, new taxes [#permalink]

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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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According to the Department of Social Services, new taxes [#permalink]

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30 Aug 2015, 07:31
gmatter0913 wrote:
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.

I share the doubt as of above.

Here is my analysis regarding the question

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?

In order to weaken the feasibility of Governors plan

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.
What they need to do before imposing the tax increase does not affect the conclusion at all.

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.
(If imposing tax will not address the underlying causes and the costs increase then the plan caanot be succesful even if extra revenue is generated i.e., it cant help to aid Medical Aid program. Although not convincing keep it a side.)

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.
(Out of scope. This does not affect the argument in any way.)

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.
this hurts the possibility behind the plan being successful.

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.
Other states met with mixed success ie., some positive some negative. This neither strengthens nor weakens.

So left with B and D.
First time I chose B because of the reason mentioned with D.
second time I got why D is right.
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According to the Department of Social Services, new taxes   [#permalink] 30 Aug 2015, 07:31
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