It is not correct that the people of the United States, relative to comparable countries, are the most lightly taxed. True, the United States has the lowest tax, as percent of gross domestic product, of the Western industrialized countries, but tax rates alone do not tell the whole story. People in the United States pay out of pocket for many goods and services provided from tax revenues elsewhere. Consider universal health care, which is an entitlement supported by tax revenues in every other Western industrialized country, United States government health-care expenditures are equivalent to about 5 percent of the gross domestic product, but private health-care expenditures represent another 7 percent. This 7 percent, then, amounts to a tax.
The argument concerning whether the people of the United States are the most lightly taxed is most vulnerable to which one of the following criticisms?
(A) It bases a comparison on percentages rather than on absolute numbers.
(B) It unreasonably extends the application of a key term.
(C) It uses negatively charged language instead of attempting to give a reason.
(D) It generalizes from only a few instances.
(E) It sets up a dichotomy between alternatives that are not exclusive.
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Regards, S

Anand , I must admit I am not able to understand the meaning of choice B itself. Can you please shed light on that.
S
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Regards, S

yes OA is B.
S
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Regards, S

B it is.

The argument is about low taxes in United States to which the author is agreeing. That the tax rate is low compared to other western industrialized countries. And then the argument jumps from "low tax rate" to "good and services provided from tax revenues" to "universal health care" to "government health care expenditure" to "private health care expenditure"

The argument is immoderately extending the application of key term(tax rate).