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A proposed change to federal income tax laws would eliminate deduction

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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 03 Jan 2014, 07:16
MODIFIED ELEMENTS OF ARGUMENT ARE AS FOLLOWS-----

CONCLUSION- Many charitable and institutions would have to reduce services, and some would have to close their doors.
PREMISE-1. A proposed change to federal income tax laws would MAKE DONATIONS TAXABLE....

PREMISE-2. Wealthy individuals WILL HAVE TO PAY TAXES...

GUESS ON ASSUMPTION----
1. SOME WEALTHY INDIVIDUALS MAY NOT DONATE IF DONATIONS ARE NOT TAXABLE.....
2. DONATIONS BY WEALTHY INDIVIDUALS DOES MATTER WHEN PROVIDING SERVICES ....


The argument above assumes which of the following?

(A) Without incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwise would have. CORRECT

(B) Money contributed by individuals who make their donations because of provisions in the federal tax laws provides the only source of funding for many charitable and educational institutions.... EXTREME....... INCORRECT....

(C) The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes. INCORRECT

(D) Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions. EXTREME...

(E) Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income.INCORRECT
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 30 Jan 2014, 16:25
why not D ???
the conclusion says : Therefore, many charitable and institutions would have to reduce services, and some would have to close their doors.

D says :Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions.

if you negate D you will get " wealthy people are not the only one who pay to charities , so there are other people who donate ,,, this means that the charities will not close because they have another source. (the conclusion weakened)
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 31 Jan 2014, 07:28
CLEARLY " A"......
"D" IS EXTREME AND NEED NOT BE TRUE TO THE EXTENT GIVEN..... EVEN A MODERATE VERSION IS OK.... IN OTHER WORDS "IT'S A OVER KILL".......


hope it helps......
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 15 Feb 2014, 10:30
omega17 wrote:
A proposed change to federal income tax laws would eliminate deductions from taxable income for donations a taxpayer has made to charitable and educational institutions. If this change were adopted, wealthy individuals would no longer be permitted such deductions. Therefore, many charitable and institutions would have to reduce services, and some would have to close their doors.


Proposed - Eliminate deductions from Taxable income if taxpayers make to charitable and educational institutions.

If adopted - Wealthy Individuals would no longer be permitted such deductions.

Conclusion - charitable and educational institutions would have to close their services.

The argument above assumes which of the following?

(A) Without incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwise would have.

True why would Wealthy Individuals like to donate to charitable and educational institutions ?

(B) Money contributed by individuals who make their donations because of provisions in the federal tax laws provides the only source of funding for many charitable and educational institutions.

Over emphasis , hence not true.

(C) The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes.

Irrelevant and out of scope.

(D) Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions.

The passage doesn't mention that wealthy people are the only contributors.

(E) Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income.

Mentions a proposed course of action , this can not be an assumption.


Hence IMO (A) looks the best..
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 02 Mar 2014, 21:55
Options B and D are too extreme assumptions because of the word 'only'.The conclusion is MANY would reduce services while only SOME would shut shop.That implies the rich are not the ONLY source.
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 14 Apr 2015, 17:43
If we look at the last two line of the argument

"If this change were adopted, wealthy individuals would no longer be permitted such deductions. Therefore, many charitable and institutions would have to reduce services, and some would have to close their doors. "

We can that there is a disconnect between the two. Wealthy individuals would not be permitted such deductions but how will that impact the money flow to the charitable institutions and that's where (A) comes in. Hence A is the correct answer
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 04 Mar 2016, 12:51
My answers bellow:

Got it right by elimination.

(A) Without incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwis would have. CORRECT: it it not clear that ALL institutions would close. The TONE is not EXTREME in this answer choice

(B) Money contributed by individuals who make their donations because of provisions in the federal tax laws provides the only source of funding for many charitable and educational institutions. THE ONLY source is a very extreme assumption

(C) The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes. out of scope

(D) Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions. how can this be assumed, we have no info about it. WRONG

(E) Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income. Again, out of scope. doesn't help.
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 10 Jul 2016, 16:48
A as it is the most conservative answer choice out of all of them. Good strategy to use in these situations. Those considering B or D, realize that for these assumption questions 'only' 'all' type wording usually takes it too far
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 23 Oct 2017, 21:10
Hello Experts,

Could you please explain why A is correct & B and D are wrong, even though all shatter the conclusion on negating them?

Thanks.
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 25 Oct 2017, 18:08
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snjainpune wrote:
Hello Experts,

Could you please explain why A is correct & B and D are wrong, even though all shatter the conclusion on negating them?

Thanks.

Quote:
A proposed change to federal income tax laws would eliminate deductions from taxable income for donations a taxpayer has made to charitable and educational institutions. If this change were adopted, wealthy individuals would no longer be permitted such deductions. Therefore, many charitable and institutions would have to reduce services, and some would have to close their doors.

The argument above assumes which of the following?

(A) Without incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwis would have.

(B) Money contributed by individuals who make their donations because of provisions in the federal tax laws provides the only source of funding for many charitable and educational institutions.

(C) The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes.

(D) Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions.

(E) Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income.

The idea is that if wealthy individuals are no longer permitted to deduct donations from their taxes, then "many charitable and educational institutions would have to reduce services." This rests on the assumption that without the tax incentives, the wealthy individuals will not donate as much (choice A). As a result, those institutions would have less money and have to reduce services.

In order to draw the conclusion, wealthy individuals do not have to be the ONLY source of funding for those institutions. Even if donations from wealth individuals account for, say, half of the funding, if those donations are significantly reduced, the institutions would lose a lot of money. Thus, choice (B) can be eliminated.

Choice (D) can be eliminated for the same reason. Wealthy individuals do not have to be the ONLY individuals who make donations. Regardless, if the donations from just the wealthy individuals are reduced, the institutions would lose money and have to reduce services.

Choice (A) is the best answer.
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 25 Oct 2017, 21:55
Please explain the negation of Option A

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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 25 Oct 2017, 22:12
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vishwajeet2015 wrote:
Please explain the negation of Option A

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Hi

(A) Without the incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwise would have.

The negation of the option A is:
Thinking logically, if there are some wealthy persons who would donate less money
Then if this negated, it means, no wealthy persons would donate less money OR All wealthy individual would donate the same amount of money.
So now the conclusion breaks as if the above negation happens charitable institutions wont suffer from funds.

Hope this helps
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 28 Apr 2018, 05:29
Hiii Experts Please provide POE for B and D. I am not able to understand from previous expalnations
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Re: A proposed change to federal income tax laws would eliminate deduction [#permalink]

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New post 03 May 2018, 17:36
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rajatkataria14@gmail.com wrote:
Hiii Experts Please provide POE for B and D. I am not able to understand from previous expalnations

I don't have much to add on top of what was written in this post...

B and D would certainly strengthen the argument, but this is not a strengthen question. We are looking for an assumption made by the argument. Wealthy individuals might be only source of funding for those institutions, but the argument could still hold even if this were not true.

For example, maybe wealthy individuals are the primary source of funding, and the institutions receive some funding from other sources. The institutions would still obviously have a serious financial problem if the wealthy individuals were to stop donating. (D) can be eliminated for the same reason.

Without (A), the argument falls apart, so it is the best answer. I hope that helps. If not, please be as specific as possible with your follow-up questions. Thanks!
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Re: A proposed change to federal income tax laws would eliminate deduction   [#permalink] 03 May 2018, 17:36

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