GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 23 Jun 2018, 16:31

### 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
TAGS:

### Hide Tags

CEO
Joined: 20 Nov 2005
Posts: 2852
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Which of the following best completes the passage below? One [#permalink]

### Show Tags

26 Jan 2006, 02:54
00:00

Difficulty:

(N/A)

Question Stats:

40% (03:29) correct 60% (01:06) wrong based on 37 sessions

### HideShow timer Statistics

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
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Manager
Joined: 04 Jan 2006
Posts: 50

### Show Tags

26 Jan 2006, 06:09
B seems the the best option. Good question.
Senior Manager
Joined: 05 Aug 2005
Posts: 401

### Show Tags

26 Jan 2006, 08:37
After almost 3 minutes of thinking I am narrowing down to D
Director
Joined: 17 Dec 2005
Posts: 538
Location: Germany
Re: CR - Tax Reform [#permalink]

### Show Tags

26 Jan 2006, 09:43
ps_dahiya wrote:
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

Teh present tax system is a progressive one. The author says, while the progressive system might, theoretical, be fair, it isn't in reality.

D
Manager
Joined: 13 Dec 2005
Posts: 223
Location: Milwaukee,WI

### Show Tags

26 Jan 2006, 10:15
Well its a difficult one but i will go with D .....
SVP
Joined: 16 Oct 2003
Posts: 1754

### Show Tags

26 Jan 2006, 10:15
Agree with D. In B we cannot really say that the government's revenue can be increased.
Director
Joined: 04 Oct 2005
Posts: 573
Location: Chicago

### Show Tags

26 Jan 2006, 19:09
A clear D...Its more illusory than real
Current Student
Joined: 29 Jan 2005
Posts: 5128

### Show Tags

26 Jan 2006, 21:27
B is the trap answer because loopholes and credits would still exist.

(D) summarizes the author`s thoughts smoothly.
Director
Joined: 26 Sep 2005
Posts: 550
Location: Munich,Germany

### Show Tags

27 Jan 2006, 23:35
got D as well..well the answer needs to be a flow of the author's argument which is effectively opposing the opponents of the flat tax system. D does that just well.
SVP
Joined: 30 Mar 2006
Posts: 1709

### Show Tags

05 Jun 2006, 04:00
D.

The author talks about the flat tax system and the present tax system and points out how each is different.
BSchool Forum Moderator
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 777
Location: Viet Nam
GMAT Date: 06-06-2014
GPA: 3.07
Re: Which of the following best completes the passage below? One [#permalink]

### Show Tags

10 Dec 2011, 03:15
1
02:06 for D, although E is temping with me. Choice E in my thought is wrong because it's quite out of scope. The argument talk about why the high-income people can reduce their tax-paid, not talk about fairness with low-income people. So, D is more correct one.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Manager
Joined: 13 Aug 2010
Posts: 194
Re: Which of the following best completes the passage below? One [#permalink]

### Show Tags

13 Dec 2011, 02:49
(A) higher-income taxpayers are likely to lend their support to the flat-tax proposal now being considered by Congress
-- opposes whats been said
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues
-- nothing mentioned abt govt. revenues
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country
-- opp to whats been mentioned
(D) the progressive nature of our present tax system is more illusory than real
-- CORRECT!
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be
-- how, just making the flat tax makes the every one pay equal tax, but is it fair to the lower-income taxpayer? nothing mentioned.
Intern
Joined: 19 Feb 2012
Posts: 14
Re: Which of the following best completes the passage below? One [#permalink]

### Show Tags

07 Mar 2013, 04:14
This is unfair, the author never says that the present tax system is a progressive tax system, in the passage he presents the progressive tax system as an alternative tax system and not the present tax system. It may be the case that the poor and middle class pay a lot and the rich don't pay anything at all. How can d be right?

Posted from GMAT ToolKit
Senior Manager
Joined: 14 Feb 2018
Posts: 332
Re: Which of the following best completes the passage below? One [#permalink]

### Show Tags

08 Mar 2018, 00:46
VerbalBot wrote:
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Hi VerbalBot !!

I am confused between D and E. Please clarify as to why is E not the right answer inspite of the fact that the argument judges the relative fairness of both the tax systems.

Sent from my Lenovo K53a48 using GMAT Club Forum mobile app
Manager
Joined: 15 Oct 2017
Posts: 214
Re: Which of the following best completes the passage below? One [#permalink]

### Show Tags

08 Mar 2018, 01:27
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 : Incorrect, given the premise higher income taxpayers are less likely to lend support to the flat tax proposal.
(B) a flat-tax system that allowed no deductions or exemptions would substantially increase actual government revenues : No information about government revenues in the premise, "could be true" answer but we cannot be sure about this. Incorrect.
(C) the lower-income taxpayer might well be penalized by the institution of a flat-tax system in this country : Opposite of what is the central argument. Incorrect.
(D) the progressive nature of our present tax system is more illusory than real : The argument talks about how progressive tax, even though initially enforced to tax the high paying group, has ended up doing quite the opposite. Hence, the progressive nature does not hold relevance in reality. Hold.
(E) the flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be : The part "any progressive tax system could be" makes this option an exaggerated one. Agreed that the present system of progressive tax is flawed give that high-income group is able to find loopholes, but what is such changes are made that the high-income group cannot find loopholes and is taxed fairly? Hence, the claim that flat tax would be fairer to "any" progressive tax system cannot be made. Incorrect.

Hence, D.
Re: Which of the following best completes the passage below? One   [#permalink] 08 Mar 2018, 01:27
Display posts from previous: Sort by