Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Nov 2014, 04:26

Close

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Which of the following best completes the passage below? One

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
User avatar
Joined: 06 Jul 2006
Posts: 295
Location: SFO Bay Area
Schools: Berkeley Haas
Followers: 2

Kudos [?]: 33 [0], given: 0

Which of the following best completes the passage below? One [#permalink] New post 30 Jan 2008, 09:33
1
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

32% (01:59) correct 68% (01:10) wrong based on 24 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

I had first marked E and then B, both incorrect.
_________________

-------------------------------------------------------------
When you come to the end of your rope, tie a knot and hang on.

Senior Manager
Senior Manager
avatar
Joined: 22 Sep 2005
Posts: 280
Followers: 1

Kudos [?]: 63 [0], given: 1

Re: CR - Tax Reform Proposal [#permalink] New post 30 Jan 2008, 09:56
suntaurian 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 had first marked E and then B, both incorrect.


I think it is D.
A is out because higher-income taxpayers want to pay less,not more.
B out is out because it is not justified that there will be more revenues.
C out because lower-income taxpayer might not well be penalized with the flat system
E out because it can not be justified that flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be.

PLEASE, post your verbal comments in the VERBAL part of the forum.
CEO
CEO
User avatar
Joined: 29 Mar 2007
Posts: 2593
Followers: 16

Kudos [?]: 204 [0], given: 0

Re: CR - Tax Reform Proposal [#permalink] New post 30 Jan 2008, 19:41
suntaurian 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 had first marked E and then B, both incorrect.


A: this doesnt flow with the passage. furthermore higher income would likely support the progressive
B: cannot deduce this.
C: maybe, but this doesnt flow with the ending of the passage which is talking about high income tax payers.
E: this is too extreme.


D: I dont really like the answer choice itself, but it seems the best.
Senior Manager
Senior Manager
User avatar
Joined: 06 Jul 2006
Posts: 295
Location: SFO Bay Area
Schools: Berkeley Haas
Followers: 2

Kudos [?]: 33 [0], given: 0

Re: CR - Tax Reform Proposal [#permalink] New post 31 Jan 2008, 07:25
OA is D.
_________________

-------------------------------------------------------------
When you come to the end of your rope, tie a knot and hang on.

Intern
Intern
avatar
Joined: 03 Mar 2007
Posts: 31
Followers: 0

Kudos [?]: 6 [0], given: 0

Re: CR - Tax Reform Proposal [#permalink] New post 31 Jan 2008, 14:01
It certainly makes sense that the answer is D, that the present system is more an illusion of progressive taxation than anything else as in reality it is not progressive at all as the rich benefit greatly

However, I initially chose B as it seems intuitive that if everyone is paying a set tax rate relative to their income without any possibility of deductions then government revenue must be higher but we do not know what the proposed tax rates would be at each level and thus cannot deduce B
Manager
Manager
User avatar
Joined: 06 Sep 2009
Posts: 115
Followers: 2

Kudos [?]: 19 [0], given: 3

Re: CR - Tax Reform Proposal [#permalink] New post 12 Nov 2009, 01:15
Hello,

could someone tell why C is not a good answer?
Retired Moderator
avatar
Joined: 03 Aug 2010
Posts: 247
Followers: 2

Kudos [?]: 30 [0], given: 41

Re: CR - Tax Reform Proposal [#permalink] New post 30 Oct 2010, 21:25
why A is out ?
_________________

http://www.gmatpill.com/gmat-practice-test/

Amazing Platform

Senior Manager
Senior Manager
avatar
Joined: 23 May 2010
Posts: 443
Followers: 5

Kudos [?]: 36 [0], given: 112

Re: CR - Tax Reform Proposal [#permalink] New post 30 Oct 2010, 22:21
hirendhanak wrote:
why A is out ?


hi
the question does not explains what shall be the impact of flat tax syste. we are not sure whether the current deduction / exemptions will continue or not ?
hence you can not conclude that high income earners will support flat tax system ...


it is main point / conclusion question
The best option that defines the essence of the passage should be chosen....!
.....hence D .......cheers !
Manager
Manager
avatar
Joined: 16 Jun 2010
Posts: 188
Followers: 2

Kudos [?]: 34 [0], given: 5

Re: CR - Tax Reform Proposal [#permalink] New post 01 Nov 2010, 00:41
Straight D
_________________

Please give me kudos, if you like the above post.
Thanks.

Senior Manager
Senior Manager
avatar
Joined: 14 Jun 2010
Posts: 334
Followers: 2

Kudos [?]: 15 [0], given: 7

Re: CR - Tax Reform Proposal [#permalink] New post 01 Nov 2010, 04:57
tilted D :-)
Senior Manager
Senior Manager
User avatar
Status: Can't give up
Joined: 20 Dec 2009
Posts: 321
Followers: 2

Kudos [?]: 26 [0], given: 35

Re: CR - Tax Reform Proposal [#permalink] New post 01 Nov 2010, 06:14
This more seems to be a POE question..nothing looks good let's go for the least better one!
Manager
Manager
avatar
Joined: 06 Aug 2010
Posts: 225
Location: Boston
Followers: 2

Kudos [?]: 83 [0], given: 5

Re: CR - Tax Reform Proposal [#permalink] New post 01 Nov 2010, 06:27
I went with E. I see why D can be considered the right answer, but I rejected it because it doesn't seem to be a good conclusion for the passage. The passage is about comparing the flat tax to the progressive tax, while D sets a conclusion that makes it sound like the point of the passage is to criticize the progressive tax.

It works, but I don't like it...
Manager
Manager
User avatar
Joined: 13 Apr 2010
Posts: 173
Location: singapore
Schools: Wharton,NY Stern,INSEAD,Stanford
Followers: 2

Kudos [?]: 30 [0], given: 25

GMAT ToolKit User
Re: CR - Tax Reform Proposal [#permalink] New post 01 Nov 2010, 07:23
Pls help to explain why B is incorrect and why D is correct?
_________________

Regards,
Nagesh
My GMAT Study Plan: my-gmat-study-plan-112833.html
Idioms List : gmat-idioms-104283.html?hilit=idioms#p813231
--------------------------------------
Consider Kudos if you like my posts

Senior Manager
Senior Manager
User avatar
Joined: 12 Dec 2010
Posts: 282
Concentration: Strategy, General Management
GMAT 1: 680 Q49 V34
GMAT 2: 730 Q49 V41
GPA: 4
WE: Consulting (Other)
Followers: 6

Kudos [?]: 35 [0], given: 23

Reviews Badge
Re: CR - Tax Reform Proposal [#permalink] New post 23 May 2011, 04:44
nageshshiv wrote:
Pls help to explain why B is incorrect and why D is correct?


With the information given had the word "substential" been not there in the option - then I think it would make btter sense to pick B

D - correct because no other answers seems to be going right :wink: Just POE works here...
_________________

My GMAT Journey 540->680->730!


~ When the going gets tough, the Tough gets going!

VP
VP
avatar
Status: There is always something new !!
Affiliations: PMI,QAI Global,eXampleCG
Joined: 08 May 2009
Posts: 1362
Followers: 12

Kudos [?]: 147 [0], given: 10

Re: CR - Tax Reform Proposal [#permalink] New post 24 May 2011, 22:10
clean D,concluding over the progressive tax system.
_________________

Visit -- http://www.sustainable-sphere.com/
Promote Green Business,Sustainable Living and Green Earth !!

Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 657
Followers: 10

Kudos [?]: 89 [0], given: 51

Re: CR - Tax Reform Proposal [#permalink] New post 26 May 2011, 03:11
this is a simple D.
_________________

What is of supreme importance in war is to attack the enemy's strategy.

Manager
Manager
avatar
Status: UC Berkeley 2012
Joined: 03 Jul 2010
Posts: 191
Location: United States
Concentration: Economics, Finance
GPA: 4
WE: Consulting (Investment Banking)
Followers: 3

Kudos [?]: 14 [0], given: 10

GMAT ToolKit User
Re: CR - Tax Reform Proposal [#permalink] New post 29 May 2011, 07:49
indeed, easy one: D
Re: CR - Tax Reform Proposal   [#permalink] 29 May 2011, 07:49
    Similar topics Author Replies Last post
Similar
Topics:
Which of the following best completes the passage below? One chika77 14 19 Jun 2007, 17:09
Which of the following best completes the passage below? One ecotopia 8 02 Jun 2006, 06:22
Which of the following best completes the passage below? One ps_dahiya 17 26 Jan 2006, 01:54
Which of the following best completes the passage below? One ywilfred 11 31 Aug 2005, 08:06
Which of the following best completes the passage below? One rahul 1 08 Dec 2004, 23:40
Display posts from previous: Sort by

Which of the following best completes the passage below? One

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.