Recently proposed legislation would change the way that the federal

Question

Recently proposed legislation would change the way that the federal government treats the donation of used cars to charity. Under current rules, people can donate used cars and take a deduction equal to the full value of the car on their taxes. Under new rules, only a small fraction of the value of the car could be deducted. Since many charities rely on the income produced from used car donations, the new rules will severely impair the financial capabilities of these charities, and possibly cause some to shut down.

The argument above assumes which of the following?

A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.

B. Money generated from the sale of donated used cars provides the only source of funding for many charities.

C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits.

D. People that donate cars to charities do not donate cash or other goods to charity.

E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction.

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BongBideshini · Answer

While drawing the conclusion, the author must have thought people donate money for the sake of tax savings. If people are donating only for the goodwill of charity, a change of legislation would not change the behavior of those donors. 
Option A is in line with this assumption
 Correct answer A

B. Money generated from the sale of donated used cars provides the only source of funding for many charities.  
The prompt states that these donations "severely impair" the charities' financial capabilities. Not 100% true.

C. The only reason for adopting the proposed legislation is to prevent the abuse of the system by car brokers who make money by buying used cars donated to charities and then selling them for large profits.  
The underlying motivation for proposing the law has no impact on the actual financial consequences the law will have on charities.

D. People that donate cars to charities do not donate cash or other goods to charity.  
Even if car donors also donate cash, losing the specific income generated from the car donations can still severely impair the charity's overall budget.

E. Income tax laws should be changed so that people who wish to donate a car can sell the car themselves and then donate the proceeds for a deduction.  
This is a prescriptive statement about what the law should do. An assumption must be a factual missing link required to make the author's current argument valid, not an opinion on policy reform.

DeadScout · Answer

Why A and not B? for two main reasons:
1) The question prompt mentions that "the new rules will severely impair the financial capabilities" => it can't be the only source of funding
2) The prompts conclude that "and possibly cause some to shut down." (There's no certainty of shut down, and some will POSSIBLY shut down) => it can't be the only source of funding, or otherwise many charities will shut down.
Other answers can be eliminated quite easily, I believe.

arushi118 · Answer

A. Without the incentive of a deduction of the full value of the car, at least some individuals will no longer donate their used cars to charity as they otherwise would have.

B: Too strong. The argument only says many charities rely on this income, not that it is their only funding source.

C: Irrelevant. The reason for the legislation does not affect whether charities will lose funding.

D: Not required. Donors could still give cash or other goods; the argument is about car donations specifically.

E: A policy recommendation, not an assumption needed for the argument to work.

Recently proposed legislation would change the way that the federal

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Recently proposed legislation would change the way that the federal

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