Which of the following best completes the passage below? One : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 19 Jan 2017, 07:41

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Which of the following best completes the passage below? One

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Manager
Joined: 23 Apr 2007
Posts: 131
Followers: 1

Kudos [?]: 31 [0], given: 0

Which of the following best completes the passage below? One [#permalink]

### Show Tags

24 Jun 2007, 07:24
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

### HideShow timer Statistics

2. 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

Could someone please explain why the ans is 'D'?
If you have any questions
you can ask an expert
New!
Manager
Joined: 23 Dec 2006
Posts: 136
Followers: 1

Kudos [?]: 26 [0], given: 0

Re: CR1000, Q2: Explanation [#permalink]

### Show Tags

24 Jun 2007, 07:49
AugiTh wrote:
2. 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 out of scope
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues out of scope
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country no evidence to support this
(D) the progressive nature of our present tax system is more illusory than real POE, within scope, etc etc
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be i want to say that this is wrong because it's too extreme in it's conclusion. not all high income people skirt tax laws, and so progressive taxes are not categorically less fair than a flat tax.

Could someone please explain why the ans is 'D'?
Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 111 [0], given: 0

### Show Tags

24 Jun 2007, 17:31
I think B is not out of scope...the reason why its wrong it that loopholes and credits(the other things in the list) may still exist...so we cant say that govt revenues will increase.
Manager
Joined: 23 Dec 2006
Posts: 136
Followers: 1

Kudos [?]: 26 [0], given: 0

### Show Tags

24 Jun 2007, 18:01
Sure it's out of scope. The passage is about the incidence of a tax and the fairness of said incidence; government revenue is never mentioned.
Director
Joined: 29 Jul 2006
Posts: 874
Followers: 3

Kudos [?]: 111 [0], given: 0

### Show Tags

25 Jun 2007, 10:28
sludge wrote:
Sure it's out of scope. The passage is about the incidence of a tax and the fairness of said incidence; government revenue is never mentioned.

Thanks for correcting me...B is indeed out of scope.
25 Jun 2007, 10:28
Similar topics Replies Last post
Similar
Topics:
2 Which of the following best completes the passage below? One 7 07 Dec 2009, 00:45
1 Which of the following best completes the passage below? One 17 30 Jan 2008, 09:33
Which of the following best completes the passage below? One 14 19 Jun 2007, 17:09
Which of the following best completes the passage below? One 7 26 Apr 2007, 18:33
Which of the following best completes the passage below? One 7 04 Apr 2007, 17:45
Display posts from previous: Sort by

# Which of the following best completes the passage below? One

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.