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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
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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.
This point weakens the argument as if the statement is true then the argument is weakend on its 30% claim.

(B) Making a great deal of money is an insignificant factor in driving technological innovation.
weakens teh argument which suggest that tax is direclty relative to the technological advancement,

(C) Falling behind in the international arms race does not necessarily lead to a strategically less advantageous position.
Although this is a blunt statement but we considera ll the choices to betrue as they are,it weakens the argument,as the arument suggest that the arms race leads to strategicall advancement.

(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.
weakens one the way of life point of the argument.

(E) Allowing one’s country to lose its technological edge, especially as concerns weaponry, would be foolish rather than merely a historical accident.

Does not weaken or have any impact on the argument. Thus is the correct choice.
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Politician: All nations that place a high tax on income produce thereb [#permalink]
I do understand that E is the best answer. Here but I need help in proving C does weaken here.
My thought process is that, falling behind in arms race IS a strategically disadvantageous position and as in the option C it does not lead to that the position. So how does that weaken the conclusion ? I know I am messing up the reasoning here, but I can't figure a way out.
Experts please help ! GMATNinja VeritasKarishma
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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
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vikasp99 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.


Look at how we have arrived at the conclusion - look at the link between 'high tax' and 'value system and way of life'.

High tax hampers tech innovation.
Hampered tech innovation means falling behind in arms race.
Those in strategically disadvantageous position (presumably those behind in arms race) lose their voice in the world affairs.

Conclusion: If a nation wants to maintain its value system and way of life (presumably by retaining value in world affairs), it must not allow its highest tax bracket to exceed 30 percent of income.

(A) The top level of taxation must reach 45 percent before taxation begins to deter inventors and industrialists from introducing new technologies and industries.

It brings the figure of 30% into question.

(B) Making a great deal of money is an insignificant factor in driving technological innovation.

This weakens "High tax hampers tech innovation".

(C) Falling behind in the international arms race does not necessarily lead to a strategically less advantageous position.

This weakens the relation between "Falling behind in the international arms race" and "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.

This weakens the relation between "lose voice in the world community" and "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.

Losing tech edge would be foolish. This is irrelevant to the argument.

Answer (E)
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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
Thank you, VeritasKarishma, for making it clear.
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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
Gokul20 wrote:
I do understand that E is the best answer. Here but I need help in proving C does weaken here.
My thought process is that, falling behind in arms race IS a strategically disadvantageous position and as in the option C it does not lead to that the position. So how does that weaken the conclusion ? I know I am messing up the reasoning here, but I can't figure a way out.
Experts please help ! GMATNinja VeritasKarishma


Hi Gokul

Let me attempt to answer your question here. As per the stimulus:

i) High tax on income (X) --> negative incentive for technological innovation (Y) --> fall behind in the international arms race (Z).

Separately

ii) Strategically disadvantageous position (P) --> lose voice in the world affairs (Q).

Based on the above two causal relations, the conclusion drawn is that "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".

Option (C) says: Falling behind in the international arms race -X-> strategically less advantageous position. This breaks the connection between (i) and (ii) above (since it disconnects Z and P), and thus breaks the connection between X and Q (which can only be connected through Z and P). This can now be interpreted as:

High tax on income -X-> lose voice in the world affairs. This clearly weakens the conclusion.

Hope this helps.
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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
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Re: Politician: All nations that place a high tax on income produce thereb [#permalink]
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