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

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

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30 Jan 2008, 10:33
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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

I had first marked E and then B, both incorrect.
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Re: CR - Tax Reform Proposal [#permalink]

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30 Jan 2008, 10:56
suntaurian 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

I had first marked E and then B, both incorrect.

I think it is D.
A is out because higher-income taxpayers want to pay less,not more.
B out is out because it is not justified that there will be more revenues.
C out because lower-income taxpayer might not well be penalized with the flat system
E out because it can not be justified that flat tax would actually be fairer to the lower-income taxpayer than any progressive tax system could be.

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Re: CR - Tax Reform Proposal [#permalink]

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30 Jan 2008, 20:41
suntaurian 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

I had first marked E and then B, both incorrect.

A: this doesnt flow with the passage. furthermore higher income would likely support the progressive
B: cannot deduce this.
C: maybe, but this doesnt flow with the ending of the passage which is talking about high income tax payers.
E: this is too extreme.

D: I dont really like the answer choice itself, but it seems the best.
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Re: CR - Tax Reform Proposal [#permalink]

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31 Jan 2008, 08:25
OA is D.
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Re: CR - Tax Reform Proposal [#permalink]

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31 Jan 2008, 15:01
It certainly makes sense that the answer is D, that the present system is more an illusion of progressive taxation than anything else as in reality it is not progressive at all as the rich benefit greatly

However, I initially chose B as it seems intuitive that if everyone is paying a set tax rate relative to their income without any possibility of deductions then government revenue must be higher but we do not know what the proposed tax rates would be at each level and thus cannot deduce B
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Re: CR - Tax Reform Proposal [#permalink]

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12 Nov 2009, 02:15
Hello,

could someone tell why C is not a good answer?
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Re: CR - Tax Reform Proposal [#permalink]

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30 Oct 2010, 22:25
why A is out ?
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Re: CR - Tax Reform Proposal [#permalink]

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30 Oct 2010, 23:21
hirendhanak wrote:
why A is out ?

hi
the question does not explains what shall be the impact of flat tax syste. we are not sure whether the current deduction / exemptions will continue or not ?
hence you can not conclude that high income earners will support flat tax system ...

it is main point / conclusion question
The best option that defines the essence of the passage should be chosen....!
.....hence D .......cheers !
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Re: CR - Tax Reform Proposal [#permalink]

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01 Nov 2010, 01:41
Straight D
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Re: CR - Tax Reform Proposal [#permalink]

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01 Nov 2010, 05:57
tilted D
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Re: CR - Tax Reform Proposal [#permalink]

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01 Nov 2010, 07:14
This more seems to be a POE question..nothing looks good let's go for the least better one!
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Re: CR - Tax Reform Proposal [#permalink]

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01 Nov 2010, 07:27
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I went with E. I see why D can be considered the right answer, but I rejected it because it doesn't seem to be a good conclusion for the passage. The passage is about comparing the flat tax to the progressive tax, while D sets a conclusion that makes it sound like the point of the passage is to criticize the progressive tax.

It works, but I don't like it...
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Re: CR - Tax Reform Proposal [#permalink]

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01 Nov 2010, 08:23
Pls help to explain why B is incorrect and why D is correct?
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Re: CR - Tax Reform Proposal [#permalink]

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23 May 2011, 05:44
nageshshiv wrote:
Pls help to explain why B is incorrect and why D is correct?

With the information given had the word "substential" been not there in the option - then I think it would make btter sense to pick B

D - correct because no other answers seems to be going right Just POE works here...
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Re: CR - Tax Reform Proposal [#permalink]

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24 May 2011, 23:10
clean D,concluding over the progressive tax system.
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Re: CR - Tax Reform Proposal [#permalink]

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26 May 2011, 04:11
this is a simple D.
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Re: CR - Tax Reform Proposal [#permalink]

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29 May 2011, 08:49
indeed, easy one: D
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Re: Which of the following best completes the passage below? One [#permalink]

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02 Jun 2015, 10:11
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