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# Abolish taxes, and real taxpayers would find that their

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Director
Joined: 03 Jul 2003
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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
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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

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Intern
Joined: 09 Dec 2003
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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
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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

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Senior Manager
Joined: 26 Jan 2004
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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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GMAT Instructor
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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

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SVP
Joined: 30 Oct 2003
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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.

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Manager
Joined: 09 Jun 2003
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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

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GMAT Instructor
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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...

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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

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Intern
Joined: 30 Mar 2007
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21 Dec 2008, 05:41
1
KUDOS
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

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VP
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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.

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

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Re: LS-T1-CR4-20   [#permalink] 28 Dec 2008, 07:33
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