CR Taxes : GMAT Critical Reasoning (CR)
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CR Taxes

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Director
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30 Jan 2005, 09:21
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Guys, I already know the answer, we need to have discussion. Only discussion will help everybody.

Abolish taxes, and real taxpayers would find that their disposable incomes have increased. Abolish taxes, and public employees would find that their incomes have disappeared.

Which one of the following is a logical conclusion that depends on information in both of the statements above?

(A) Public offices should be abolished so that disposable incomes will rise.

(B) The only real taxpayers are those who would have more to spend if they did not pay taxes.

(C) Public employees are not real taxpayers.

(D) Public employeesâ€™ incomes should not be taxed since they come from taxes.

(E) If there were no taxes, then public employees could not be paid.
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Praveen

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VP
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30 Jan 2005, 09:37
Good one Praveen. I pick "C".

The ques clearly indicates that the taxpayers r responsible for public employees paycheck. Also ques asks, which can be concluded from BOTH the statements and not just one.

(A) Public offices should be abolished so that disposable incomes will rise.
------never mentioned in the stem

(B) The only real taxpayers are those who would have more to spend if they did not pay taxes.
-----can be concluded from the first part but not second

(C) Public employees are not real taxpayers.
-----Only one that can be concluded using BOTH the statements.

(D) Public employeesâ€™ incomes should not be taxed since they come from taxes.
------Out of scope
(E) If there were no taxes, then public employees could not be paid.
----Can be concluded from 2nd statement only.
SVP
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30 Jan 2005, 09:56
Good question and great explanation. I agree it's (C).
Director
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30 Jan 2005, 15:57
How do you conclude that C uses both statements? Please explain the reasoning. I am not able to derive C from both the statments.

Good question Praveen, keep it coming ..
Director
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30 Jan 2005, 18:51
I say the answer is (C) because it seems that the abolishment of taxes will have different impact on each group of people. Meaning if public employees were the same as real tax payers, then the abolishment of taxes will have the same impact on them.
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31 Jan 2005, 03:19
banerjeea_98, good explanation.

From first and second sentence, we can conclude that public exployees are not real taxpayers, or they will find their disposable incomes increase.

I agree with you.
Director
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31 Jan 2005, 08:33
OA is C.

You guys rock
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Praveen

31 Jan 2005, 08:33
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