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# Abolish taxes, and real taxpayers would find that their

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Director
Joined: 03 Jul 2003
Posts: 646
Abolish taxes, and real taxpayers would find that their  [#permalink]

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02 Feb 2004, 14:01
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20. Abolish taxes, and real taxpayers would find that their disposable incomes have increased. Abolish taxes, and public employees would find that their incomes have disappeared.

Which one of the following is a logical conclusion that depends on information in both of the statements above?

(A) Public offices should be abolished so that disposable incomes will rise.

(B) The only real taxpayers are those who would have more to spend if they did not pay taxes.

(C) Public employees are not real taxpayers.

(D) Public employeesтАЩ incomes should not be taxed since they come from taxes.

(E) If there were no taxes, then public employees could not be paid.

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Director
Joined: 03 Jul 2003
Posts: 646

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02 Feb 2004, 14:22
Zhung Gazi wrote:
blind shot e

Looks like I'm not the only blind person here
Intern
Joined: 09 Dec 2003
Posts: 18
Location: Stockholm

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02 Feb 2004, 14:44
I think this is not a GMAT type of question. Am I right?
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GMAT Instructor
Joined: 07 Jul 2003
Posts: 755
Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE

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03 Feb 2004, 05:46
20. Abolish taxes, and real taxpayers would find that their disposable incomes have increased. Abolish taxes, and public employees would find that their incomes have disappeared.

Which one of the following is a logical conclusion that depends on information in both of the statements above?

(A) Public offices should be abolished so that disposable incomes will rise.

(B) The only real taxpayers are those who would have more to spend if they did not pay taxes.

(C) Public employees are not real taxpayers.

(D) Public employeesтАЩ incomes should not be taxed since they come from taxes.

(E) If there were no taxes, then public employees could not be paid.

This question is not very difficult. The stimulus says that IF taxes are abolished, then all real taxpayers will have there income rise. It also says that If taxes are raised, then public employees will have income decrease. Well, since ALL real taxpayers will have their incomes rise, and public employees will not have their incomes rise, then it follows that public employees cannot be real taxpayers.

C.

C'est simple, n'est pas?
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AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

Senior Manager
Joined: 26 Jan 2004
Posts: 394
Location: India

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04 Feb 2004, 06:03
I would say E.

Because E is the Direct conclusion of the given statement.

"Abolish taxes, and public employees would find that their incomes have disappeared"

Which means no taxes, hence no pay to public employees
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05 Feb 2004, 03:56
mba wrote:
I would say E.

Because E is the Direct conclusion of the given statement.

"Abolish taxes, and public employees would find that their incomes have disappeared"

Which means no taxes, hence no pay to public employees

E simply restates the second statement. You are asked for a CONCLUSION based on BOTH statements. Don't be fooled by the sucker answer...
_________________

Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

SVP
Joined: 30 Oct 2003
Posts: 1769
Location: NewJersey USA

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05 Feb 2004, 06:46
Well I thought loss of income is a subset of reduction in income. The public employees may also be paying taxes. We cannot assume that they did not. Nothing about they pay taxes or not is stated. The real tax payers are those who pay taxes and their income goes down if taxes are increased. This can happen to public employees as well.
Manager
Joined: 09 Jun 2003
Posts: 184
Location: work chair

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07 Feb 2004, 07:17
usually, it does not make sense to argue with akamai, since he is always right. would be nice to hear it from kpadma
GMAT Instructor
Joined: 07 Jul 2003
Posts: 755
Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE

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07 Feb 2004, 19:41
No, I am certainly not always right. Please feel free to criticize me anytime. If I find flaw in your logic, I (or someone else) will point it out. If you are right, I will graciously admit it. Either way you learn something...

_________________

Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

Intern
Joined: 30 Mar 2007
Posts: 45

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21 Dec 2008, 05:41
1
Note that in this question, both statements are truths. They are stated as fact without opinion. As such, there is no room for opinion in the answer choice. Thus the following choices (A and D) can be immediately eliminated as they are opinions being a salt of 'should' is there in both of these choices.

E repetition of last sentence in the argument.
B says talks only about first sentence with no reference to public employees.

C rules
VP
Joined: 05 Jul 2008
Posts: 1329

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21 Dec 2008, 13:36
Good one! I fell for the sucker. The word real, which most of us did not pay attention is the gap between the correct and wrong answer.
Manager
Joined: 21 Dec 2008
Posts: 70

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28 Dec 2008, 07:33
go with E...is it right?

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Re: LS-T1-CR4-20 &nbs [#permalink] 28 Dec 2008, 07:33
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