A proposed change to federal income tax laws would eliminate deductions from taxable income for donations a taxpayer has made to charitable and educational institutions. So in particular, if this change were adopted, wealthy individuals would no longer be permitted such deductions. Therefore, many charitable and educational institutions would be forced to reduce services.
Which of the following is an assumption on which the argument depends?
A. Without the incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwise would have.
B. Most charitable and educational institutions are satisfied with the level of services that the contributions they currently receive allow them to provide.
C. The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes.
D. Charitable and educational institutions do not currently receive a substantial proportion of their funds from tax monies collected by the government.
E. Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income.
If this question felt shaky,
try an adaptive mini quiz of similar problems in
GMAT Club Forum Quiz →. Free plan gives 5 questions per day.