It is currently 26 Sep 2017, 07:50

### 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

# Which of the following best completes the passage below? One

Author Message
SVP
Joined: 28 May 2005
Posts: 1704

Kudos [?]: 458 [0], given: 0

Location: Dhaka
Which of the following best completes the passage below? One [#permalink]

### Show Tags

21 Sep 2005, 10:45
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

### HideShow timer Statistics

2. Which of the following best completes the passage below?
One tax-reform proposal that has gained increasing support in recent years is the flat tax, which would impose a uniform tax rate on incomes at every level. Opponents of the flat tax say that a progressive tax system, which levies a higher rate of taxes on higher-income taxpayers, is fairer, placing the greater burden on those better able to bear it. However, the present crazy quilt of tax deductions, exemptions, credits, and loopholes benefits primarily the high-income taxpayer, who is consequently able to reduce his or her effective tax rate, often to a level below that paid by the lower-income taxpayer. Therefore, ______
(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
(D) the progressive nature of our present tax system is more illusory than real
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
_________________

hey ya......

Kudos [?]: 458 [0], given: 0

Manager
Joined: 07 Oct 2004
Posts: 99

Kudos [?]: 19 [0], given: 0

### Show Tags

21 Sep 2005, 11:12
A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
High incomers likely would not support
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
not necesarily true, nor does it appropriately complete the passage
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
penalized?
(D) the progressive nature of our present tax system is more illusory than real
CORRECT, supposed to be progressive, but in reality, not so.
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
progressive system is supposed to be more fair, and we can't speak for all of them.

Kudos [?]: 19 [0], given: 0

Manager
Joined: 31 Jul 2005
Posts: 86

Kudos [?]: [0], given: 0

### Show Tags

21 Sep 2005, 11:18
D-based on sentences 2 and 3. The word "however" after line 2 is also a strong hint.

Kudos [?]: [0], given: 0

Current Student
Joined: 28 Dec 2004
Posts: 3354

Kudos [?]: 317 [0], given: 2

Location: New York City
Schools: Wharton'11 HBS'12

### Show Tags

21 Sep 2005, 12:27
D makes sense...

Kudos [?]: 317 [0], given: 2

Manager
Joined: 26 Jun 2005
Posts: 122

Kudos [?]: 1 [0], given: 0

### Show Tags

21 Sep 2005, 14:20
I pick D
_________________

Chet

Kudos [?]: 1 [0], given: 0

Senior Manager
Joined: 15 Aug 2005
Posts: 257

Kudos [?]: 4 [0], given: 0

Location: Las Vegas, NV

### Show Tags

21 Sep 2005, 16:11
Totally D. A is just plain wrong, the rich guys LIKE the tax system. The other choices are out of scope

Kudos [?]: 4 [0], given: 0

Director
Joined: 05 Jul 2004
Posts: 894

Kudos [?]: 62 [0], given: 0

### Show Tags

21 Sep 2005, 16:27
Agree with (D). Progressive Tax system fails its objective.

Kudos [?]: 62 [0], given: 0

SVP
Joined: 28 May 2005
Posts: 1704

Kudos [?]: 458 [0], given: 0

Location: Dhaka

### Show Tags

22 Sep 2005, 02:56
Good job guys.... OA is D
_________________

hey ya......

Kudos [?]: 458 [0], given: 0

Director
Joined: 23 Jun 2005
Posts: 840

Kudos [?]: 86 [0], given: 1

GMAT 1: 740 Q48 V42

### Show Tags

22 Sep 2005, 18:38

Kudos [?]: 86 [0], given: 1

Director
Joined: 15 Aug 2005
Posts: 794

Kudos [?]: 72 [0], given: 0

Location: Singapore

### Show Tags

22 Sep 2005, 19:19
Yep this is a straight D!
_________________

Cheers, Rahul.

Kudos [?]: 72 [0], given: 0

22 Sep 2005, 19:19
Display posts from previous: Sort by