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GMAT Club Legend
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Which of the following best completes the passage below? One [#permalink]
 31 Aug 2005, 09:06
Question Stats:
0% (00:00) correct
 0% (00:00) wrong based on 0 sessions
Which of the following best completes the passage below?
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______
(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
(D) the progressive nature of our present tax system is more illusory than real
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
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Senior Manager
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I would go for E
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Senior Manager
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D, B is a tough reject but can be rejected because whether the revenue will increae or decrease depend upon the flat tax rate...
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Fear Mediocrity, Respect Ignorance
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Manager
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D'
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Manager
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"E"
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VP
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I will go with D
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Intern
Joined: 31 Aug 2005
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(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
(Not possible)
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
(Cannot confirm from the argument)
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
(Cannot be infrerred)
(D) the progressive nature of our present tax system is more illusory than real
(Can be infrerred)
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
(The passage does not state that the progressive tax is not fair to the lower-income taxpayer)
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Manager
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d should be right
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Senior Manager
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D for me too.
GA
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GMAT Club Legend
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OA is D.
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D is the logical completion.
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Manager
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My answer after taking a few minutes was E.....Unfortunately, D was the ffirst one I crossed out 
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