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Tax evasion

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Tax evasion [#permalink] New post 28 Apr 2011, 07:10
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A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

62% (02:10) correct 38% (03:18) wrong based on 21 sessions
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[Reveal] Spoiler: OA

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Re: Tax evasion [#permalink] New post 28 Apr 2011, 09:05
I must say this was a close call between C and D.
Both these options introduce a new reason as an assumption. Options A,B and E can be POE'd.
However, option D if you negate the statement then it actually supports the argument.As, lowering tax rates and putting fine won't deter the evaders.Thus the increase in tax rates by the law maker. Hence POE.

In option C, using negation there won't be a necessity for the lawmakers to increase the tax rates,if they had planned for the revenue lost.Hence, the argument falls apart. Thus it is the OA.

Good question indeed.
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Re: Tax evasion [#permalink] New post 28 Apr 2011, 09:22
I thought C made more sense to set things up, but D was really really close on its heels as a corollary. The assumption to C makes the situation inevitable, but there must be a core of evaders who will never comply unless otherwise forced / induced.

Great question.
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Re: Tax evasion [#permalink] New post 28 Apr 2011, 09:48
I agree with you on your reasoning behind choice "C"..but I do not concur with the explanation for elimination of choice "D"..

Question stem is like this if not A(the answer choice) then not B(the vicious cycle).

Choice "D" states that unless the low tax rates are reinforced with the hefty fines for the evasion, the tax evasion is bound to occur.This choice is vague.Now if this statement were true then the so called vicious cycle will not occur.
If A(the answer choice) then not B(The vicious cycle) Thus choice "D" is out!

Choice "C" states that Lawmakers do not account for the lost revenue through evasion.This statement must be true because if lawmakers would have accounted for the lost revenue then they won't have increased the interest rates.
If not A(the answer choice) then not B(the vicious cycle)

Which makes "C" the best among all choices.

amit2k9 wrote:
I must say this was a close call between C and D.
Both these options introduce a new reason as an assumption. Options A,B and E can be POE'd.
However, option D if you negate the statement then it actually supports the argument.As, lowering tax rates and putting fine won't deter the evaders.Thus the increase in tax rates by the law maker. Hence POE.

In option C, using negation there won't be a necessity for the lawmakers to increase the tax rates,if they had planned for the revenue lost.Hence, the argument falls apart. Thus it is the OA.

Good question indeed.

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Re: Tax evasion [#permalink] New post 29 Apr 2011, 00:19
The answer is C, by negation technique.
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Re: Tax evasion [#permalink] New post 30 Apr 2011, 00:03
'Choice "D" states that unless the low tax rates are reinforced with the hefty fines for the evasion, the tax evasion is bound to occur.This choice is vague.Now if this statement were true then the so called vicious cycle will not occur.
If A(the answer choice) then not B(The vicious cycle) Thus choice "D" is out!'

agreed on the reason you eliminated D , the purpose is to kill the vicious cycle , and the passage is not about lowering of taxes as a method , it is out of context.the shell game this one.
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Re: Tax evasion   [#permalink] 30 Apr 2011, 00:03
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