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Proponents of the so-called, 'Flat Tax' often argue that

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Proponents of the so-called, 'Flat Tax' often argue that [#permalink]

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Proponents of the so-called, 'Flat Tax' often argue that their plans for simplified tax laws will save money through the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes. This is a preposterous suggestion since it is obvious that any tax, no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts.

The conclusions above would be most strongly supported by which of the following facts, if true?

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.
C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.
D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.
E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals

Request you to please share your reasoning.
[Reveal] Spoiler: OA

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Re: Proponents of the so-called, 'Flat Tax' - Veritas Test [#permalink]

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New post 27 Dec 2012, 08:29
hi Himanshu,

The question is asking for...
The conclusions above would be most strongly supported by which of the following facts, if true?

The conclusion of the argument is..."no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts."

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
This is going against the argument saying there is no relation between collection agency and complexity.
B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.
Clearly Irrelevant
C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.
Out of scope since it is clear that the argument agrees that Flat tax will be simple. Alternative tax proposals out of scope
D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.
Weakens the argument
E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals
Could be the answer

Waiting for expert opinion. Let us see what others have to say!
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Re: Proponents of the so-called, 'Flat Tax' - Veritas Test [#permalink]

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New post 27 Dec 2012, 10:46
imhimanshu wrote:
Proponents of the so-called, 'Flat Tax' often argue that their plans for simplified tax laws will save money through the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes. This is a preposterous suggestion since it is obvious that any tax, no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts.

The conclusions above would be most strongly supported by which of the following facts, if true?

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.
C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.
D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.
E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals

Request you to please share your reasoning.


A. The main argument here is that the flat tax won't save any money because you still need a way to enforce it. A is the only answer that directly addresses the argument and shows that there would be little to no savings involved in a flat tax system.
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Re: Proponents of the so-called, 'Flat Tax' - Veritas Test [#permalink]

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New post 27 Dec 2012, 21:58
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imhimanshu wrote:
Proponents of the so-called, 'Flat Tax' often argue that their plans for simplified tax laws will save money through the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes. This is a preposterous suggestion since it is obvious that any tax, no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts.

The conclusions above would be most strongly supported by which of the following facts, if true?

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.
C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.
D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.
E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals

Request you to please share your reasoning.


Question Stem: The conclusions above would be most strongly supported by which of the following facts, if true?

It is a strengthen question. You need to look for the option that strengthens the conclusion of the argument.

What is the conclusion?

Conclusion: "This is a preposterous suggestion since it is obvious that any tax, no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts"
Any tax, simple or complicated, will require an enforcement and collection agency so costs will not go down.

What will strengthen this conclusion?
Something that says that any kind of tax will have similar agency costs.

Look at the options:

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.

If the size of the tax collection agency stays the same, chances are that the cost will stay the same too. Hence, the cost may not depend on the complexity of the tax code. It does strengthen the argument. Answer.

B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.

Irrelevant to the argument how the flat tax is calculated.

C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.

Again, irrelevant. We need to figure out whether simplified tax laws will reduce cost.

D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.

Irrelevant to the argument. The structure of flat tax doesn't concern us.

E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals

Irrelevant. It doesn't matter how voters feel.
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Re: Proponents of the so-called, 'Flat Tax' often argue that [#permalink]

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New post 28 Jan 2015, 19:59
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Proponents of the so-called, 'Flat Tax' often argue that [#permalink]

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New post 15 Jul 2016, 10:46
Argument in simple terms

1. Proponents of the so-called, 'Flat Tax' often argue that their plans for simplified tax laws will save moneythrough the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes.

2. Argument says that suggestion is ridiculous or stupid.

Reason: Since any tax, no matter how simple, will require an enforcement and collection agency.

Analysis: Irrespective of complexity of tax laws, still collection agency is required and as per the argument usage of this fact to counter claim of cost savings indicate that possibly costs cannot be saved even if we go with Flat tax proposal.

It would definitely seem useless to invest in something(to follow new regulation) which serves no purpose right.
So major amount of regular costs regarding taxes may exist with agency and not with laws.
We need to find whether there is a change in agency costs w.r.t complexity of tax code.
Since if it agency costs reduce with complexity then conclusion is weakened. So we need to ensure the removal of any such possibility.



Strengthen question

A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.

This is inline with our reasoning above. Let Karishma words help us.................

If the size of the tax collection agency stays the same, chances are that the cost will stay the same too. Hence, the cost may not depend on the complexity of the tax code. It does strengthen the argument.

B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.

This focus on the flat tax calculation........are we bothered by collection method and
also notice the danger word some...........what if the number behind this some advocates is really small or almost negligible. We cannot consider this option important anyway.

C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.

Again some word ruins it. What if this complexity is harmless?

D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.

OFS. After procedures of cost savings is not our point of concern.

E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals

OFS. It doesn't matter how voters feel.

I struggled a lot because of this question and could not decipher it still after going through two expert replies. If this post helps someone please add kudos to notify the same. Do not give up for its smart word play. :idea: :)
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Proponents of the so-called, 'Flat Tax' often argue that   [#permalink] 15 Jul 2016, 10:46
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