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# It is not correct that the people of the United States,

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Manager
Joined: 22 May 2005
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It is not correct that the people of the United States, [#permalink]

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16 Jul 2005, 13:59
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It is not correct that the people of the United States, relative to comparable countries, are the most lightly taxed. True, the United States has the lowest tax, as percent of gross domestic product, of the Western industrialized countries, but tax rates alone do not tell the whole story. People in the United States pay out of pocket for many goods and services provided from tax revenues elsewhere. Consider universal health care, which is an entitlement supported by tax revenues in every other Western industrialized country. United States government health-care expenditures are equivalent to about 5 percent of the gross domestic product, but private health-care expenditures represent another 7 percent. This 7 percent, then, amounts to a tax.

The argument concerning whether the people of the United States are the most lightly taxed is most vulnerable to which one of the following criticisms?

(A) It bases a comparison on percentages rather than on absolute numbers

(B) It unreasonably extends the application of a key term

(C) It uses negatively charged language instead of attempting to give a reason

(D) It generalizes from only a few instances

(E) It sets up a dichotomy between alternatives that are not exclusive

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Director
Joined: 11 Mar 2005
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16 Jul 2005, 16:40
Looks B to me

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16 Jul 2005, 18:59
I will go with A

look % is a dubious number...5% of 100 is 5, while 5% of 10 is 0.5! right?

so how can you say that US tax payers pay the least, when say the GDP of the US is 100 times larger than other westernized nations...people in the US would then probably pay more in taxes than say other countries..

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Senior Manager
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16 Jul 2005, 20:03
fresinha12 wrote:
I will go with A

look % is a dubious number...5% of 100 is 5, while 5% of 10 is 0.5! right?

so how can you say that US tax payers pay the least, when say the GDP of the US is 100 times larger than other westernized nations...people in the US would then probably pay more in taxes than say other countries..

I think the topic is about tax policy comparison. If you compare the absolute
number, then the comparsion becomes comparing the population size etc.

I tend to go with B

The term 'tax' was extended to mean more than just the amount that you pay to the government tax office.

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Director
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18 Jul 2005, 08:19
qpoo wrote:
The term 'tax' was extended to mean more than just the amount that you pay to the government tax office.

Agree (B). '...7% to private hospitals now mean tax'

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18 Jul 2005, 10:40
whats the OA?

usually I think with these type of questions, especially ones that have numbers, usually you can zone in on that as possible weakness, strenght etc...

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Senior Manager
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20 Jul 2005, 10:57
I narrowed down the choices to A and B, and will choose B. I feel that the author is extending the term "private health care expenditure" to "tax".

fresinha12 - I agree that "percentage" can be a dicey term, and you gave a good example. BUT, the author is referring to the "7% Private health care expenditure" as "tax". Though I must admit, I am still tempted to choose A.

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Director
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20 Jul 2005, 16:54
This is seen in recent times.. B looks good..."Tax" has been taken for ride

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20 Jul 2005, 16:54
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# It is not correct that the people of the United States,

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