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Which of the following, if true, is the most logical

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Director
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Which of the following, if true, is the most logical [#permalink] New post 04 Oct 2005, 17:06
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Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts
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Re: CR - Republic of Grootland [#permalink] New post 04 Oct 2005, 19:36
rahulraao wrote:
Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

A for me!


(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
means that there is tax relief for portions of income which eventually will become savings. So, by exempting those portions from taxes, the system now favors saving.
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 [#permalink] New post 04 Oct 2005, 23:51
I'll take A. The rest of the options favor borrowing.
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 [#permalink] New post 05 Oct 2005, 03:07
&$%@ :evil:
You guys got it right! OA is A! I got it wrong!!!!!
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  [#permalink] 05 Oct 2005, 03:07
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