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# One state adds a 7 percent sales tax to the price of most

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Manager
Joined: 09 May 2009
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One state adds a 7 percent sales tax to the price of most [#permalink]

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28 Jan 2010, 22:01
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(N/A)

Question Stats:

75% (01:30) correct 25% (03:58) wrong based on 6 sessions

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One state adds a 7 percent sales tax to the price of most products purchased within its jurisdiction. This tax, therefore, if viewed as tax on income, has the reverse effect of the federal income tax: the lower the income, the higher the annual percentage rate at which the income is taxed.
The conclusion above would be properly drawn if which of the following were assumed as a premise?
(A) The amount of money citizens spend on products subject to the state tax tends to be equal across income levels.
(B) The federal income tax favors citizens with high incomes, whereas the state sales tax favors citizens with low incomes.
(C) Citizens with low annual incomes can afford to pay a relatively higher percentage of their incomes in state sales tax, since their federal income tax is relatively low.
(D) The lower a state's sales tax, the more it will tend to redistribute income from the more affluent citizens to the rest of society.
(E) Citizens who fail to earn federally taxable income are also exempt from the state sales tax.
pls break down the argument and provide reasons for elimintaion
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Intern
Joined: 02 Jan 2010
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28 Jan 2010, 22:36
A

so basically lower income ppl end up paying more sales tax so end result higher apr as compare to higher income ppl

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Director
Joined: 24 Aug 2007
Posts: 924

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WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain

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09 Jun 2010, 06:29
Only option A matches the amount of purchases with the Premise1 in the argument.

Is A is the OA?
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Manager
Joined: 30 Mar 2010
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09 Jun 2010, 14:46
A !

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Manager
Joined: 30 Mar 2010
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11 Jul 2010, 22:16
ykaiim OA was A if your still wondering. i just googled it.

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Re: lsat cr   [#permalink] 11 Jul 2010, 22:16
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# One state adds a 7 percent sales tax to the price of most

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