It is not correct that the people of the United States, : GMAT Critical Reasoning (CR)
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# It is not correct that the people of the United States,

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Director
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It is not correct that the people of the United States, [#permalink]

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04 Mar 2005, 07:21
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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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04 Mar 2005, 07:30
using POE I narrowed it down to (A) and (B).

But the taxes are always expressed as percentages. So I ruleout (A)

I would say (B).
one explanation for (B) could be that.
I believe people chose to go for private healthcare vs govt healthcare. If they didnt do that then they will not pay any money that could be conuted as tax.
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04 Mar 2005, 07:37
Anand , I must admit I am not able to understand the meaning of choice B itself. Can you please shed light on that.
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04 Mar 2005, 07:50
saurya_s wrote:
Anand , I must admit I am not able to understand the meaning of choice B itself. Can you please shed light on that.
S

I wish I could confidently explain. Honestly I dont know what it exactly means. The author is talking about adding expenditures indirectly to tax.
I dont know what the key term is

let us say in USA you pay 30% of u r income as tax. You may be entittled to govt health care or you may not be entittled to govt health care. If you are not entittled then you will go for private healthcare and spend more money. This could be more than 10% (say 15%of u r income)

Now you are actually paying 45% here.

Now in Uk for example you pay 40% tax and you are always enttiled to healthcare. So u just pay 40% and get free healthcare.

(B) says this unreasonable because this way many things could be included. Who knows you might pay $5000 in us for an operation at Beverly Hills when you can get the samehting done for$2000 in some other city. This way you can comeup with huge numbers.
This is like exaggerating the application of healthcare expenditure.

is (B) the OA? These LSAT questions are tough and wierd.

Last edited by anandnk on 04 Mar 2005, 08:19, edited 1 time in total.
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04 Mar 2005, 07:59
yes OA is B.
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Re: CR United States has the lowest tax [#permalink]

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07 Jun 2010, 14:41
no way for a human being to solve this question in 2 mins.
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Re: CR United States has the lowest tax [#permalink]

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10 Jun 2010, 13:26
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).
Re: CR United States has the lowest tax   [#permalink] 10 Jun 2010, 13:26
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