Fact1: Over the past eight years , cuts in federal income : GMAT Critical Reasoning (CR)
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# Fact1: Over the past eight years , cuts in federal income

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Senior Manager
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Fact1: Over the past eight years , cuts in federal income [#permalink]

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19 Aug 2010, 22:03
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Difficulty:

25% (medium)

Question Stats:

94% (02:14) correct 6% (00:00) wrong based on 16 sessions

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Fact1: Over the past eight years , cuts in federal income tax
rates have resulted in US taxpayers paying a smaller proportion of
their incomes as federal taxes.

Fact2: OVer the past eight years , US taxpayers have paid a larger
proportion of their incomes as state and local taxes.

Fact1 would most likely contribute to an explanation of Fact2 if
which of the following were true?

a. An increased demand in the number and quality of services provided
by state an local authorities has occured in the last eight years.
b. Lower federal income taxes have increased the amount of money in
the economy available for discretionary spending.
c. Over the past years, a large number of states have instituted
state income taxes, in addition to the more common property and sales
taxes.
d. Cuts in the federal income tax were made possible by ending or
downsizing many federal programs.
e. Cuts in the federal income tax were made possible by shifting the
costs of some programs to state and local authorities.

Why not C?
[Reveal] Spoiler: OA
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19 Aug 2010, 23:33
E it is.

C is incorrect because C doesn't explain why Fact 1 could contribute to Fact 2. C only may be explain why taxpayers have to play a portion of their income for State tax, but it doesn't link Fact 1 with Fact 2.

E perfectly link the 2 facts together
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21 Aug 2010, 09:23
E it is
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21 Aug 2010, 10:29
E is a clear winner here
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21 Aug 2010, 10:42
E is the option that connects Fact 1 and Fact 2...
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23 Aug 2010, 07:28
Only E explains the cut in federal income taxes and increase in state and local taxes
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24 Aug 2010, 00:23
rohitgoel15 wrote:

Why not C?

The important catch here is Fact 1 need to explain Fact 2.
Option C is only explaining Fact 2. That too, it brings a new information. Moreover, you can notice the subtle scope shift from "US taxpayer" to "Large No of States have instituted"..Right !!

E explicates the link between F1 and F2.
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Re: past eight years   [#permalink] 24 Aug 2010, 00:23
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# Fact1: Over the past eight years , cuts in federal income

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