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# When people evade income taxes by not declaring taxable income, a vici

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GMAT Club Verbal Expert
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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25 Apr 2018, 11:14
GMATNinja

Quote:
The vicious cycle described above could not result unless which of the following were true?

Can I replace unless with except and complete: cross out anything that ___ (the blank here is weakens)

Or:

Do I treat unless as a necessary condition (e.g. A student can not get higher grades in studies
unless he is consistent)

Hence, I need an answer choice that must be true to weaken the conclusion.

Quote:
In other words, if the vicious cycle could still occur regardless of whether an answer choice is true, then that answer choice should be eliminated

Is this similar to negation and we need to know its effect on conclusion?

Quote:
Do I treat unless as a necessary condition (e.g. A student can not get higher grades in studies
unless he is consistent)

But we don't want an answer choice that weakens the conclusion. We are looking for something that MUST be true in order for the vicious cycle to occur. So if the vicious cycle can occur regardless of whether a choice is true, then we can eliminate that answer.
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18 May 2018, 07:08
GMATNinja, can I re-frame the question "The vicious cycle described above could not result unless which of the following were true?" as

"The vicious cycle described above could not result if the following were true EXCEPT?" or indirectly

"The vicious cycle described above could result if the one of the following were true?"
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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19 May 2018, 08:23
seed wrote:
GMATNinja, can I re-frame the question "The vicious cycle described above could not result unless which of the following were true?" as

"The vicious cycle described above could not result if the following were true EXCEPT?" or indirectly

"The vicious cycle described above could result if the one of the following were true?"

I don't think either of these is quite right...

If you wanted to turn it into an except question, it would have to be something like, "the vicious cycle could still occur regardless of whether each of the following is true EXCEPT." But trying to re-frame questions is usually a bad idea that will just leave you twisted up and confused!

What's important here is that if the vicious cycle could still occur regardless of whether an answer choice is true, then that answer choice should be eliminated.

I hope that helps!
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08 Aug 2018, 04:35
I still don't get how not allowing for tax evasion in counting revenue would stop the vicious cycle. According to me, it would just decrease the increase in tax rate to some percentage, and unless taxes are zero(or there is any significant con of evading tax), there's always a possibility of tax evasion. I don't understand how a reduced increase in tax rates is going to stop the cycle.......!!!!

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GMAT Club Verbal Expert
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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17 Aug 2018, 10:42
Blackishmamba wrote:
I still don't get how not allowing for tax evasion in counting revenue would stop the vicious cycle. According to me, it would just decrease the increase in tax rate to some percentage, and unless taxes are zero(or there is any significant con of evading tax), there's always a possibility of tax evasion. I don't understand how a reduced increase in tax rates is going to stop the cycle.......!!!!

To be clear, when we choose (C) we are doing a couple of things:

• We're agreeing that if lawmakers allow adequately for tax evasion, they could stop the vicious cycle. NOT allowing adequately for tax evasion is what enables the vicious cycle to result and continue.
• We're identifying what would stop the vicious cycle, not necessarily what would stop tax evasion.

(C) is the best choice because it identifies an action on the part of lawmakers (not tax evaders) that could close one end of the cycle, but that action is not actually being taken. Consequently, the vicious cycle results, just as the author concludes.

In case the language is tripping you up, the phrase "allow for" is NOT the same as "allow." It's much closer to "account for." Here, have some examples of these phrases:

• The parents allowed their children to eat candy outside the house, so they forbade their children from eating candy at home.
• The parents allowed for the fact that their children eat candy outside the house, so they bought less candy to keep at home.
• The parent accounted for the fact that their children eat candy outside the house, so they bought less candy to keep at home.

In the first bullet above, we're strictly talking about permission that is given or not given. In the second two bullets, we're talking about how people plan for certain outcomes, and change their actions accordingly.

I hope this helps!
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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18 Aug 2018, 00:00
Hi GMATNINJA, I am still confused with the question "The vicious cycle described above could not result unless which of the following were true?".
Isn't it asking us to find the option which helps in stopping the vicious cycle?
If so, i feel C strongly allows a vicious cycle. Can you help me out?
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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19 Aug 2018, 09:35
krishnabalu wrote:
Hi GMATNINJA, I am still confused with the question "The vicious cycle described above could not result unless which of the following were true?".
Isn't it asking us to find the option which helps in stopping the vicious cycle?
If so, i feel C strongly allows a vicious cycle. Can you help me out?

krishnabalu, see if this portion of the original explanation helps:

Let's think about what would happen if lawmakers DID allow adequately for revenue that will be lost through evasion.

In other words, the lawmakers decide that they need some amount of tax revenue, and they set the tax rates accordingly. In doing so, they ASSUME that some people are going to evade income taxes. But that's okay because the lawmakers accounted for this in their calculations. So even though some people will evade taxes, the government is still getting all of the tax revenue that it expected to get.

In that case, there is no need for additional tax revenue and, thus, no need to increase tax rates! That means that the vicious cycle would be avoided. The vicious cycle described above could not happen unless choice (C) were true, so (C) looks good.

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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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06 Sep 2018, 09:03
HI GMATNinja,

One clarification I would like to have. Are those options wrong which are not needed to be true for the vicious cycle to break? OR No matter the the wrong option is true or false, the vicious cycle doesn't break? And we are finding an option which has to be true to break the vicious cycle.
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Re: QOTD: When people evade income taxes by not declaring taxable  [#permalink]

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25 Sep 2018, 14:57
1
akshaykotha wrote:
HI GMATNinja,

One clarification I would like to have. Are those options wrong which are not needed to be true for the vicious cycle to break? OR No matter the the wrong option is true or false, the vicious cycle doesn't break? And we are finding an option which has to be true to break the vicious cycle.

akshaykotha, if the vicious cycle could still occur regardless of whether an answer choice is true or false, then that answer choice should be eliminated.

The correct answer is something that has to be true in order for the vicious cycle to occur, not something that has to be true in order to break the vicious cycle.

I hope that helps!
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Reading Comprehension, Critical Reasoning, and other articles & resources
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Re: When people evade income taxes by not declaring taxable income, a vici  [#permalink]

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19 Mar 2019, 20:18
I have read all the post related to this question. But still not understanding option E

What is the meaning of option E and why is it wrong??
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Re: When people evade income taxes by not declaring taxable income, a vici  [#permalink]

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22 Mar 2019, 09:02
wunderbar03 wrote:
When people evade income taxes by not declaring taxable income, a vicious cycle results. Tax evasion forces lawmakers to raise income tax rates, which causes the tax burden on nonevading taxpayers to become heavier. This, in turn, encourages even more taxpayers to evade income taxes by hiding taxable income.

The vicious cycle described above could not result unless which of the following were true?

(A) An increase in tax rates tends to function as an incentive for taxpayers to try to increase their pretax incomes.

(B) Some methods for detecting tax evaders, and thus recovering some tax revenue lost through evasion, bring in more than they cost, but their success rate varies from year to year.

(C) When lawmakers establish income tax rates in order to generate a certain level of revenue, they do not allow adequately for revenue that will be lost through evasion.

(D) No one who routinely hides some taxable income can be induced by a lowering of tax rates to stop hiding such income unless fines for evaders are raised at the same time.

(E) Taxpayers do not differ from each other with respect to the rate of taxation that will cause them to evade taxes.

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Practice Question
Question No.: 69
Page: 144
Difficulty:

I know that this is not a Sentence Correction question, but is the question mark in the question stem correct?

The vicious cycle described above could not result unless which of the following were true?

As I see it, this is not a question.

Could somebody explain it?
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Re: When people evade income taxes by not declaring taxable income, a vici   [#permalink] 22 Mar 2019, 09:02

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