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# One tax-reform proposal that has gained increasing support in recent

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Joined: 16 Dec 2010
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One tax-reform proposal that has gained increasing support in recent  [#permalink]

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Updated on: 13 Dec 2019, 05:31
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Difficulty:

95% (hard)

Question Stats:

44% (01:58) correct 56% (01:59) wrong based on 428 sessions

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Which of the following best completes the passage below?

One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______

(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
(D) the progressive nature of our present tax system is more illusory than real
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be

Originally posted by venkat18 on 26 Mar 2011, 10:58.
Last edited by Bunuel on 13 Dec 2019, 05:31, edited 1 time in total.
Renamed the topic and edited the question.
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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27 Sep 2011, 22:11
4
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level.:premise-the pros and cons of flat tax
Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it.
However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. note that there is a change in tone here-the word 'however' signifies that what was assummed previously is not really true. hence the conclusion should be somethoing like:'Therefore, things are not as they seem'---which is more or less what (D) says.
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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27 Sep 2011, 17:13
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I choose "B". However , i understand the above explanation.
Please clarify my question below:
1. How do you generally pick the right conclusion?. Since, the premise talks about the flaws of progressive tax system in many places, should the conclusion should also be related to weakening progressive tax system?.

I thought the author was under the assumption that flat rate will increase government revenues (Also, premise states the flaws in the progressive tax system).

Thanks in Advance
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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27 Sep 2011, 21:37
2
D

1) Illogical
2) depends, yes it can but can depend on many other factors
3) May be depends whether the flat tax is higher or lower than present for lower income groups.
4) Correct
5) Illogical
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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03 Aug 2013, 00:03
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nikhil.jones.s wrote:
Hi all,
Could you explain to me what is wrong with E) ? Isn't the fairness of the flat tax system and progressive tax system actually in question here?

hi ,
in this argument author is supporting FLAT TAX system.

One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______

option E is wrong because of the extreme word ANY
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be

moreover the author opposes progressive tax by saying:
the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer

so author says that progressive tax system benefits PRIMARILY high income tax payer....but he never says that it doesnt benefits lower income tax payer + there is no comparison given that which tax system will benefit more to low income tax payer.

hope it helps
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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08 Mar 2018, 01:27
1
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______

(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress : Incorrect, given the premise higher income taxpayers are less likely to lend support to the flat tax proposal.
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues : No information about government revenues in the premise, "could be true" answer but we cannot be sure about this. Incorrect.
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country : Opposite of what is the central argument. Incorrect.
(D) the progressive nature of our present tax system is more illusory than real : The argument talks about how progressive tax, even though initially enforced to tax the high paying group, has ended up doing quite the opposite. Hence, the progressive nature does not hold relevance in reality. Hold.
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be : The part "any progressive tax system could be" makes this option an exaggerated one. Agreed that the present system of progressive tax is flawed give that high-income group is able to find loopholes, but what is such changes are made that the high-income group cannot find loopholes and is taxed fairly? Hence, the claim that flat tax would be fairer to "any" progressive tax system cannot be made. Incorrect.

Hence, D.
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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11 Jul 2018, 02:24
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I feel option D isn't the best option as well because the stimulus doesnt really tell us whether flat tax system or progressive tax system is the present tax system...we really don't know, we only know that they are both proposals for a tax reform. How can we conclude on the present tax reform then?

I also think the use of 'Any' sounds extreme but since the argument presents a fact that is against the progressive tax system. Option E seems better.

Am I wrong?

Posted from my mobile device
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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24 Dec 2011, 09:09
D it is. Nice question and nice explanations by all. Thanks a ton.
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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02 Aug 2013, 23:49
Hi all,
Could you explain to me what is wrong with E) ? Isn't the fairness of the flat tax system and progressive tax system actually in question here?
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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27 Jul 2018, 22:21
nikhil.jones.s wrote:
Hi all,
Could you explain to me what is wrong with E) ? Isn't the fairness of the flat tax system and progressive tax system actually in question here?

I agree E is too close of an answer but it is more of an inference than a conclusion and as the passage ends with a conclusion marker i.e 'therefore', it pretty must suggest that the best way to complete it by choosing the answer choice that is explicit not implicit. Hope that helps!
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Re: One tax-reform proposal that has gained increasing support in recent  [#permalink]

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22 Nov 2019, 01:57
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Re: One tax-reform proposal that has gained increasing support in recent   [#permalink] 22 Nov 2019, 01:57
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