Fact1: Over the past eight years , cuts in federal income : GMAT Critical Reasoning (CR)
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 09 Dec 2016, 16:16

### 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
Your Progress

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

# Fact1: Over the past eight years , cuts in federal income

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Senior Manager
Joined: 19 Feb 2004
Posts: 414
Location: Lungi
Followers: 1

Kudos [?]: 30 [0], given: 0

Fact1: Over the past eight years , cuts in federal income [#permalink]

### Show Tags

01 Apr 2004, 06:03
00:00

Difficulty:

(N/A)

Question Stats:

80% (01:44) correct 20% (00:59) wrong based on 12 sessions

### HideShow timer Statistics

Fact1: Over the past eight years , cuts in federal income tax
rates have resulted in US taxpayers paying a smaller proportion of
their incomes as federal taxes.

Fact2: OVer the past eight years , US taxpayers have paid a larger
proportion of their incomes as state and local taxes.

Fact1 would most likely contribute to an explanation of Fact2 if
which of the following were true?

a. An increased demand in the number and quality of services provided
by state an local authorities has occured in the last eight years.
b. Lower federal income taxes have increased the amount of money in
the economy available for discretionary spending.
c. Over the past years, a large number of states have instituted
state income taxes, in addition to the more common property and sales
taxes.
d. Cuts in the federal income tax were made possible by ending or
downsizing many federal programs.
e. Cuts in the federal income tax were made possible by shifting the
costs of some programs to state and local authorities.
If you have any questions
you can ask an expert
New!
Director
Joined: 03 Jul 2003
Posts: 652
Followers: 3

Kudos [?]: 91 [0], given: 0

[#permalink]

### Show Tags

01 Apr 2004, 09:27
Another tough one!

My choice is B
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 39

Kudos [?]: 418 [0], given: 0

[#permalink]

### Show Tags

01 Apr 2004, 10:41
E for me also. B does not establish the link from fact 1 to fact 2 because even though customers have more discretionary spending, they could be spending more on federal services which would then not explain how fact 2 can be possible
_________________

Best Regards,

Paul

Manager
Joined: 07 May 2013
Posts: 109
Followers: 0

Kudos [?]: 24 [0], given: 1

Re: Fact1: Over the past eight years , cuts in federal income [#permalink]

### Show Tags

05 Aug 2013, 17:36
E is the answer as the government is shifting the fiscal burden accumulated by cuts in federal tax to local/state tax.
Re: Fact1: Over the past eight years , cuts in federal income   [#permalink] 05 Aug 2013, 17:36
Similar topics Replies Last post
Similar
Topics:
1 Over the past ten years 3 04 Jun 2015, 02:18
3 CEO: Over the past several years 3 02 Jun 2015, 21:10
9 In the year following an eight-cent increase in the federal 7 16 Apr 2014, 23:50
Fact1: Over the past eight years , cuts in federal income 6 19 Aug 2010, 22:03
30 In the year following an eight-cent increase in the federal 19 04 Feb 2007, 14:41
Display posts from previous: Sort by

# Fact1: Over the past eight years , cuts in federal income

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.