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When Americans filed their tax returns this year, the United [#permalink]
 08 Oct 2012, 07:50
Question Stats:
57% (02:26) correct
42% (01:24) wrong based on 87 sessions
When Americans filed their tax returns this year, the United States Treasury Department collected $315.1 billion in tax revenue, a 13.4% increase over last year. Yet the number of tax returns filed by employees did not increase significantly over the past year. Each of the following, if true, could explain the simultaneous increase in tax revenue collection and the unchanged number of employee tax returns filed EXCEPT: • During this year, the number of women who re-entered the workforce as employees, after taking time off to raise children, was greater than the number of people who retired from the workforce. • Many retired workers owed more in taxes this year due to an increase in dividends and capital gains on their stock investments. • Last year, tax revenues were unusually low because the stock market experienced a marked decline, and many taxpayers reduced their taxable income with capital losses. • Compared with previous years, a greater percentage of the total tax revenue this year was collected from small businesses and corporations. • The employees who filed tax returns were paid higher wages this year than they were in the past, and thus owed more to the government in taxes per person. OA Later
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Re: When Americans filed their tax returns.. [#permalink]
08 Oct 2012, 08:01
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aditi1903 wrote: When Americans filed their tax returns this year, the United States Treasury Department collected $315.1 billion in
tax revenue, a 13.4% increase over last year. Yet the number of tax returns filed by employees did not increase
significantly over the past year. Each of the following, if true, could explain the simultaneous increase in tax
revenue collection and the unchanged number of employee tax returns filed EXCEPT:
• During this year, the number of women who re-entered the workforce as employees, after taking time off to raise
children, was greater than the number of people who retired from the workforce.
• Many retired workers owed more in taxes this year due to an increase in dividends and capital gains on their stock
investments.
• Last year, tax revenues were unusually low because the stock market experienced a marked decline, and many
taxpayers reduced their taxable income with capital losses.
• Compared with previous years, a greater percentage of the total tax revenue this year was collected from small
businesses and corporations.
• The employees who filed tax returns were paid higher wages this year than they were in the past, and thus owed
more to the government in taxes per person.
OA Later Good One! Let me try! E. Employees remain the same but they pay more taxes because they get higher wages: Resolves the paradox.D. Same number of employees pay more taxes in small businesses (probably because of increased salary etc). Resolves the paradox.C. Tax collected this year is higher than last years taxes because during the last year people had low incomes. Resolves the paradoxB. The same number of retired employees pay more taxes. Resolves the paradox.A. Tax returns are more but we dont know how much the women's taxes compare with the people who retired. DOES NOT RESOLVE ANYTHING!Can you tell me where did you get this question from?
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Manager
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Re: When Americans filed their tax returns.. [#permalink]
08 Oct 2012, 08:05
this is a question from 700-800 club questions...
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MBA Section Director
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Re: When Americans filed their tax returns.. [#permalink]
08 Oct 2012, 08:08
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Re: When Americans filed their tax returns.. [#permalink]
08 Oct 2012, 08:19
hey thanks for the link!!! 
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Re: When Americans filed their tax returns.. [#permalink]
11 Oct 2012, 03:46
+1A • During this year, the number of women who re-entered the workforce as employees, after taking time off to raise children, was greater than the number of people who retired from the workforce. (This is our answer as it does not resolve the paradox. This imply that the number of tax payers increased and tax too. What we need to find is a situation wherein tax has increased but the number of employee has not)• Many retired workers owed more in taxes this year due to an increase in dividends and capital gains on their stock investments. (Resolves the paradox, if they owe more, they will pay more)• Last year, tax revenues were unusually low because the stock market experienced a marked decline, and many taxpayers reduced their taxable income with capital losses. (Resolves the paradox, On comparative terms, this year’s tax will be higher)• Compared with previous years, a greater percentage of the total tax revenue this year was collected from small businesses and corporations. (resolves)• The employees who filed tax returns were paid higher wages this year than they were in the past, and thus owed more to the government in taxes per person. (resolves) 
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First Attempt 710 - first-attempt-141273.html
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Re: When Americans filed their tax returns this year, the United [#permalink]
08 Nov 2012, 03:28
A very good question.
I missed the Except part and ended up wasting 3 minutes for nothing.
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Re: When Americans filed their tax returns this year, the United [#permalink]
07 Dec 2012, 16:42
Case: Americans filled their tax returns. Tax revenue increased by 13,4 % . However the number of tax returns filled by employees did not increase. aditi1903 wrote: When Americans filed their tax returns this year, the United States Treasury Department collected $315.1 billion in
tax revenue, a 13.4% increase over last year. Yet the number of tax returns filed by employees did not increase
significantly over the past year. Each of the following, if true, could explain the simultaneous increase in tax
revenue collection and the unchanged number of employee tax returns filed EXCEPT:
• During this year, the number of women who re-entered the workforce as employees, after taking time off to raise
children, was greater than the number of people who retired from the workforce. - If it is true than this should have increased the tax revenue because more employee entered (therefore more tax revenue) into workforce than retirees(who will not pay employee tax)
• Many retired workers owed more in taxes this year due to an increase in dividends and capital gains on their stock
investments. The statement says that the taxes have in general increased that increase might have arised from the other revenues such as dividend, rent, other income...etc
• Last year, tax revenues were unusually low because the stock market experienced a marked decline, and many
taxpayers reduced their taxable income with capital losses. If the stock market declined last year we understand that last year the revenue from the taxation of stock's value increase was less when compared with that of this year
• Compared with previous years, a greater percentage of the total tax revenue this year was collected from small
businesses and corporations.. The statement says that the taxes have in general increased that increase might have arised from the other revenues such as corporate tax
• The employees who filed tax returns were paid higher wages this year than they were in the past, and thus owed
more to the government in taxes per person. The employees earn more therefore we should expect that the employee tax should have been increased , yet it mentions that they have owed therefore balancing the tax revenue from salary or bonus
OA Later
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Re: When Americans filed their tax returns this year, the United
[#permalink]
07 Dec 2012, 16:42
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