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# Politician: All nations that place a high tax on income

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Director
Joined: 03 May 2007
Posts: 867

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Schools: University of Chicago, Wharton School
Politician: All nations that place a high tax on income [#permalink]

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28 Aug 2007, 13:02
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Politician: All nations that place a high tax on income produce thereby a negative incentive for technological innovation, and all nations in which technological innovation is hampered inevitably fall behind in the international arms race. Those nations that, through historical accident or the foolishness of their political leadership, wind up in a strategically disadvantageous position are destined to lose their voice in the world affairs. So if a nation wants to maintain its value system and way of life, it must not allow its highest tax bracket to exceed 30 percent of income.

Each of the following, if true, weakens the politician’s argument EXCEPT:

(A) The top level of taxation must reach 45 percent before taxation begins to deter inventors and industrialists from introducing new technologies and industries.
(B) Making a great deal of money is an insignificant factor in driving technological innovation.
(C) Falling behind in the international arms race does not necessarily lead to a strategically less advantageous position.
(D) Those nations that lose influence in the world community do not necessarily suffer from a threat to their value system or way of life.
(E) Allowing one’s country to lose its technological edge, especially as concerns weaponry, would be foolish rather than merely a historical accident.

Kudos [?]: 271 [0], given: 7

Intern
Joined: 07 Jul 2006
Posts: 4

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28 Aug 2007, 13:17
i think its E?

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VP
Joined: 10 Jun 2007
Posts: 1434

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Re: CR: Politician: All nations that place a high tax on inc [#permalink]

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28 Aug 2007, 13:36
Fistail wrote:
Politician: All nations that place a high tax on income produce thereby a negative incentive for technological innovation, and all nations in which technological innovation is hampered inevitably fall behind in the international arms race. Those nations that, through historical accident or the foolishness of their political leadership, wind up in a strategically disadvantageous position are destined to lose their voice in the world affairs. So if a nation wants to maintain its value system and way of life, it must not allow its highest tax bracket to exceed 30 percent of income.

Each of the following, if true, weakens the politician’s argument EXCEPT:

(A) The top level of taxation must reach 45 percent before taxation begins to deter inventors and industrialists from introducing new technologies and industries.
(B) Making a great deal of money is an insignificant factor in driving technological innovation.
(C) Falling behind in the international arms race does not necessarily lead to a strategically less advantageous position.
(D) Those nations that lose influence in the world community do not necessarily suffer from a threat to their value system or way of life.
(E) Allowing one’s country to lose its technological edge, especially as concerns weaponry, would be foolish rather than merely a historical accident.

It doesn't matter how lose technological edge.

A weakens by having higher tax bracket
C weakens by attacking conclusion. Conclusion states that you need to have good arm race have good position. C pretty much counter that.
D also does the same thing as C, but on different issue.
B: I had a bit of hard time with this one because I didn't know who was making the money, but you can assume that it is the nation here. This counter the evidence.

Kudos [?]: 370 [0], given: 0

Director
Joined: 03 May 2007
Posts: 867

Kudos [?]: 271 [0], given: 7

Schools: University of Chicago, Wharton School
Re: CR: Politician: All nations that place a high tax on inc [#permalink]

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28 Aug 2007, 13:58
OA is E. i did not have problem with it.

Kudos [?]: 271 [0], given: 7

Manager
Joined: 18 Aug 2007
Posts: 70

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28 Aug 2007, 22:13
Can someone explain me the reason behind E being the answer?

Agreed that all the other statements weaken the argument but i was not able to draw any conclusion out of E.

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GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5032

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Location: Singapore

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28 Aug 2007, 23:22
E is the best. we need to look for an answer that supports the politician's claim and E cuts the bill by stating that allowing the country to slip behind in the arms race would be foolish.

Kudos [?]: 453 [0], given: 0

28 Aug 2007, 23:22
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# Politician: All nations that place a high tax on income

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