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Which of the following best completes the passage below? One

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Director
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Which of the following best completes the passage below? One [#permalink] New post 26 Apr 2007, 18:33
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A
B
C
D
E

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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

Please explain your answer choice.
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 [#permalink] New post 26 Apr 2007, 19:02
I would choose E!

A contradicts what is said in the passage.
B - there is no information about the increase or decrease in the tax revenues. we don't know how much the flat rate would be.
C - again without knowing the actual flat rate value, we can't determine this.
D - this is kind of given the passage.
E - in the current system low-income taxpayers often pay higher percentage then the higher-income taxpayers. and so flat rate system would be fairer then the current one to the low-income taxpayers, where everyboyd would pay same rate.

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 [#permalink] New post 26 Apr 2007, 19:03
A and C are certainly out. The basic idea being discussed is not increase in government revenues, so B is also out. That leaves D and E. D seems correct, but it doesn't satisfy the "Therefore" very well. By that what I mean is that D doesn't seem to complete the passage since the passage is not about the progressive tax system. E, however, seems to complete the passage.

So E it is for me. The fact that it says that flat-tax will actually be fairer, also seems to point to the fact that it is focussing on discarding the opponent's argument about flat-tax being not so fair because of deductions etc.
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 [#permalink] New post 26 Apr 2007, 21:04
It can't be E

the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system

Only D makes sense
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 [#permalink] New post 26 Apr 2007, 21:19
Very good catch, AimHigher
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 [#permalink] New post 26 Apr 2007, 21:49
D.
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 [#permalink] New post 26 Apr 2007, 21:56
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

I think the answer is D.

A- may be, may be not. Depends upon the rate of the tax.

B- no actualy percentages are mentioned. So, inconclusive

C- how?

D- this is the one. The progressive tax system although sounds good on the paper, but can't really get the money out of rich people's pockets.

E- again, no figures. So, can't really compare
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 [#permalink] New post 27 Apr 2007, 00:00
shoonya wrote:
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

I think the answer is D.

A- may be, may be not. Depends upon the rate of the tax.

B- no actualy percentages are mentioned. So, inconclusive

C- how?

D- this is the one. The progressive tax system although sounds good on the paper, but can't really get the money out of rich people's pockets.

E- again, no figures. So, can't really compare


Good explanation shoonya...D it is.
  [#permalink] 27 Apr 2007, 00:00
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