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When Americans filed their tax returns this year, the United

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When Americans filed their tax returns this year, the United [#permalink] New post 08 Oct 2012, 06:50
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A
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56% (02:32) correct 44% (01:14) wrong based on 332 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
[Reveal] Spoiler: OA
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Re: When Americans filed their tax returns.. [#permalink] New post 08 Oct 2012, 07:01
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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 paradox
B. 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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Re: When Americans filed their tax returns.. [#permalink] New post 08 Oct 2012, 07:05
this is a question from 700-800 club questions...
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Re: When Americans filed their tax returns.. [#permalink] New post 08 Oct 2012, 07:08
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Re: When Americans filed their tax returns.. [#permalink] New post 08 Oct 2012, 07:19
hey thanks for the link!!! :)
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Re: When Americans filed their tax returns.. [#permalink] New post 11 Oct 2012, 02:46
+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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Re: When Americans filed their tax returns this year, the United [#permalink] New post 08 Nov 2012, 02:28
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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] New post 07 Dec 2012, 15:42
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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] New post 09 May 2014, 06:56
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


Its a two team contest between A and D. Personally, I went with A because there were just too many assumptions to make in D? Are the tax rates of small business and corporations greater or smaller than the average tax rate? Who knows, one can make the assumptions that based on real world in most developed countries corporate tax is greater than income tax in average but we can't really imply anything that is not stated somehow in the stimulus

Quite debatable, will stick around to hear more comments

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Re: When Americans filed their tax returns this year, the United [#permalink] New post 16 May 2014, 07:43
OE for this one or expert's opinion would be of great help for this one

Cheers!
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Re: When Americans filed their tax returns this year, the United [#permalink] New post 18 May 2014, 10:04
There is an increase in tax revenue but the number of people who filed returns did not increase.

ALL the answers except A, resolves this conflict with explains.

Only answer A talks about number and hence is the right answer.
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Re: When Americans filed their tax returns this year, the United [#permalink] New post 19 May 2014, 11:07
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was stuck between A and D and ended up choosing D :(

D: the greater revenue might have been from increase in tax amount. so employees can remain same
(wonder how i ended up with this)
A: There is an increase in the no. of employees (this does not resolve the paradox)
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Re: When Americans filed their tax returns this year, the United [#permalink] New post 25 May 2014, 09:47
paranoidvik wrote:
was stuck between A and D and ended up choosing D :(

D: the greater revenue might have been from increase in tax amount. so employees can remain same
(wonder how i ended up with this)
A: There is an increase in the no. of employees (this does not resolve the paradox)


Yeah I wonder what's the logic with D? It seems that one has to make several assumptions to get to it

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Re: When Americans filed their tax returns this year, the United [#permalink] New post 25 May 2014, 23:54
I wonder how D can be a plausible answer
It states- a greater % of tax was collected from business..
1.Either the businesses altogether grew
2.Tax rate for businesses increased
3.No of businesses increased

All answer the question sufficiently
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Re: When Americans filed their tax returns this year, the United [#permalink] New post 26 May 2014, 00:09
Quote:
I wonder how D can be a plausible answer
It states- a greater % of tax was collected from business..
1.Either the businesses altogether grew
2.Tax rate for businesses increased
3.No of businesses increased


well the reasoning is simple : D does open up that window that could explain the simultaneous increase in tax revenue collection and the unchanged number of employee tax returns filed

D says :Compared with previous years, a greater percentage of the total tax revenue this year was collected from small businesses and corporations.---->there by creating a case where the total tax collected has increased while keeping the number of taxpayers unchanged . u could argue that the reverse can also happen in such case .however u have to remember that GMAC CR are not open debate session where we can keep rebutting with "if's" and "but"
remember that in such question the given options may not directly explain everything

i am sure u will agree as why A is the answer .because it is evidently stating that number of taxpayers have increased in number
Re: When Americans filed their tax returns this year, the United   [#permalink] 26 May 2014, 00:09
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