It is currently 22 Feb 2018, 18:36

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Politician: My tax reform plan will cut taxes by

Author Message
TAGS:

### Hide Tags

Senior CR Moderator
Status: Long way to go!
Joined: 10 Oct 2016
Posts: 1332
Location: Viet Nam
Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

13 Aug 2017, 04:17
00:00

Difficulty:

45% (medium)

Question Stats:

61% (01:11) correct 39% (00:59) wrong based on 248 sessions

### HideShow timer Statistics

Politician: My tax reform plan will cut taxes by \$600 to \$1000 for low-income families, increasing their take-home pay by anywhere from 10 to 15%. Clearly this plan will benefit low-income families.

Which of the following, if true, would most weaken the argument above?

A. The tax reform plan would cut taxes by an even larger percentage for middle- and high-income families.
B. Rent in low-income areas has increased by approximately 20% over the last 10 years.
C. The tax reform plan will eliminate a food subsidy program that granted low-income families \$100 per month in food vouchers.
D. Recent polls show that, while the tax reform plan has the support of over 60% of high-income families, it is supported by less than one-third of low-income families.
E. Economists are unsure what effect the tax reform plan will have on the unemployment rate.
[Reveal] Spoiler: OA

_________________
 Economist GMAT Tutor Discount Codes Kaplan GMAT Prep Discount Codes e-GMAT Discount Codes
BSchool Forum Moderator
Joined: 26 Feb 2016
Posts: 2068
Location: India
GPA: 3.12
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

13 Aug 2017, 08:57
The argument talks about cutting taxes for low-income families, which indirectly increase the take-home pay.
It also states that this plan will benefit low-income families. If we are able to show that implementing this plan
does not benefit the low-income families in some way, we can weaken the argument.

Option C(The tax reform plan will eliminate a food subsidy program that granted low-income families \$100
per month in food vouchers)
does just that and is the correct answer.
_________________

Stay hungry, Stay foolish

Senior Manager
Joined: 23 Jun 2012
Posts: 344
Location: Pakistan
GPA: 3.76
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

01 Jan 2018, 05:17
Between B and C, C is better.
B talks about increased rent in last 10 years so one cant conclude that how much rent is increased this year or will increase next year
_________________

Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
-S

Manager
Joined: 20 Feb 2017
Posts: 91
Location: United States
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

02 Jan 2018, 19:58
Politician: My tax reform plan will cut taxes by \$600 to \$1000 for low-income families, increasing their take-home pay by anywhere from 10 to 15%. Clearly this plan will benefit low-income families.

To weaken above argument, we need to find if there is any catch for low-income families under the new tax plan which will either harm or mitigate the benefit mentioned in the argument.

A. The tax reform plan would cut taxes by an even larger percentage for middle- and high-income families.
Tax plan may be better for middle income but low-income families are still benefitting.

B. Rent in low-income areas has increased by approximately 20% over the last 10 years.
Increase in rent is irrelevant in this case. If tax plan is doing some good, above argument still hold.

C. The tax reform plan will eliminate a food subsidy program that granted low-income families \$100 per month in food vouchers.
Correct answer - Tax plan is taking away something from low-income families.
It is given that they will lose around \$100/month ( \$1200/year). As per original argument families will save \$6000-\$1000/year ( taxes saving are mostly mentioned annual basis) so overall no benefit to low-income families.

D. Recent polls show that, while the tax reform plan has the support of over 60% of high-income families, it is supported by less than one-third of low-income families.
no information about drawback for low-income families, support from any group not so useful.

E. Economists are unsure what effect the tax reform plan will have on the unemployment rate.
no information about unemployment and low-income families available.
_________________

*****************************************************************
Kudos are always welcome.

Intern
Joined: 01 Jan 2017
Posts: 6
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

18 Jan 2018, 20:17
I narrowed down to B and C.
B is also a weakening the statement,right? Even when the take home is increased after the new tax reform, the families have to pay more money in the rent.
Hence, although the take home pay will increase, the spending will be increased and in nutshell no benefits.

Can anyone explain why B is wrong?
Manager
Joined: 20 Feb 2017
Posts: 91
Location: United States
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

18 Jan 2018, 20:31
shrivastava.anukriti9@gmail.com wrote:
I narrowed down to B and C.
B is also a weakening the statement,right? Even when the take home is increased after the new tax reform, the families have to pay more money in the rent.
Hence, although the take home pay will increase, the spending will be increased and in nutshell no benefits.

Can anyone explain why B is wrong?

To weaken above argument, we need to find if there is any catch for low-income families under the new tax plan which will either harm or mitigate the benefit mentioned in the argument.

A. The tax reform plan would cut taxes by an even larger percentage for middle- and high-income families.
Tax plan may be better for middle income but low-income families are still benefitting.

B. Rent in low-income areas has increased by approximately 20% over the last 10 years.
Increase in rent is irrelevant in this case. If tax plan is doing some good, above argument still hold.

C. The tax reform plan will eliminate a food subsidy program that granted low-income families \$100 per month in food vouchers.
Correct answer - Tax plan is taking away something from low-income families.
It is given that they will lose around \$100/month ( \$1200/year). As per original argument families will save \$6000-\$1000/year ( taxes saving are mostly mentioned annual basis) so overall no benefit to low-income families.
_________________

*****************************************************************
Kudos are always welcome.

Veritas Prep GMAT Instructor
Joined: 26 Jul 2010
Posts: 255
Re: Politician: My tax reform plan will cut taxes by [#permalink]

### Show Tags

19 Jan 2018, 15:39
Top Contributor
Just to expand a little more on why B is irrelevant: note that the rent increase is not part of the politician's plan. That increase has been happening independently, regardless of whether the plan is implemented or not. So it's essentially a "sunk cost."

It's like if your b-school tuition were to go up by \$5,000 per semester, and your grandmother sent you a check for \$500 "to help you with tuition." You couldn't say that your grandmother didn't help you! It didn't account for all of the tuition increase, but without her \$500 you'd be worse off than you are with it. That's the politician's argument (if you include the information from choice B) - his plan still helps you, even if other circumstances are working against you at the same time.

With choice C, it's the plan taking away the subsidy program, so the net effect of the plan is that you're worse off...the plan is an active participant in reducing people's standard of living in C, whereas in B its only role is as a net positive.
_________________

Brian

Save \$100 on live Veritas Prep GMAT Courses and Admissions Consulting

Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options.

Veritas Prep Reviews

Re: Politician: My tax reform plan will cut taxes by   [#permalink] 19 Jan 2018, 15:39
Display posts from previous: Sort by