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Liberals want to raise taxes on high incomes and use the proceeds to

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Liberals want to raise taxes on high incomes and use the proceeds to  [#permalink]

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New post 10 Dec 2018, 13:48
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Liberals want to raise taxes on high incomes and use the proceeds to strengthen the social safety net; conservatives want to do the reverse claiming that tax-the-rich policies hurt everyone by reducing the incentives to create wealth. They believe that higher tax rates would cripple economic progress.

Which of the following is NOT a consideration in favor of taxing the rich without crippling economic growth?

A. Great success in business has a strong element of luck.
B. The wealthy are not always entrepreneurs; many are business executives who receive hefty pay packages.
C. Those who hit the jackpot aren't necessarily any smarter or more hard working than those who don't. They just happen to be in the right place at the right time.
D. Some people are a lot more productive than average.
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Re: Liberals want to raise taxes on high incomes and use the proceeds to  [#permalink]

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New post 10 Dec 2018, 13:51
I could not understand the question stem properly. What does it mean exactly. How would you rate this question - is it 650-700 or 700-750 or 750+ ?
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Re: Liberals want to raise taxes on high incomes and use the proceeds to  [#permalink]

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New post 11 Dec 2018, 03:03
yashjain800 wrote:
Liberals want to raise taxes on high incomes and use the proceeds to strengthen the social safety net; conservatives want to do the reverse claiming that tax-the-rich policies hurt everyone by reducing the incentives to create wealth. They believe that higher tax rates would cripple economic progress.

Which of the following is NOT a consideration in favor of taxing the rich without crippling economic growth?

A. Great success in business has a strong element of luck.
B. The wealthy are not always entrepreneurs; many are business executives who receive hefty pay packages.
C. Those who hit the jackpot aren't necessarily any smarter or more hard working than those who don't. They just happen to be in the right place at the right time.
D. Some people are a lot more productive than average.



What is the source of this question?
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Liberals want to raise taxes on high incomes and use the proceeds to  [#permalink]

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New post 24 May 2019, 01:55
yashjain800 wrote:
Liberals want to raise taxes on high incomes and use the proceeds to strengthen the social safety net; conservatives want to do the reverse claiming that tax-the-rich policies hurt everyone by reducing the incentives to create wealth. They believe that higher tax rates would cripple economic progress.

Which of the following is NOT a consideration in favor of taxing the rich without crippling economic growth?

A. Great success in business has a strong element of luck.
B. The wealthy are not always entrepreneurs; many are business executives who receive hefty pay packages.
C. Those who hit the jackpot aren't necessarily any smarter or more hard working than those who don't. They just happen to be in the right place at the right time.
D. Some people are a lot more productive than average.


What the options say:
A. If there is a strong element of luck then the rich are not necessarily the drivers of economic growth. They just happen happen to be lucky people who became rich through the economic growth. Tax them because they are not special (you will find other lucky people in case the aforementioned rich people lose the incentive).

B. Not always entrepreneurs (entrepreneurs= drivers of economic growth). We don't want to cripple economic growth and to tax the drivers of it. No reason to not tax these rich guys if they are not driving the economic growth.

C. Similar to A. Nothing special about the rich proving that they are the drivers of economic growth. Tax them.

D. Some people are a lot more productive than average. Okay.
That means, if these 'some people' are driving the economic growth, and we tax them, then they might lose the incentive to create wealth. Thereby, crippling the economic growth which is precisely what we are looking to protect.
Don't tax them.
CORRECT answer.
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Liberals want to raise taxes on high incomes and use the proceeds to   [#permalink] 24 May 2019, 01:55
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Liberals want to raise taxes on high incomes and use the proceeds to

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