Critical Reasoning

thuyduong91vnu wrote:Hi,

It should be out of topic, but could someone help to explain the differences between federal tax and state tax in the US? I find it difficult to understand as a non-native speaker. The tax amount that a delinquent has to pay the federal equals that paid the state, right? So what makes these delinquents not as willing to pay tax to the federal as they are to the state?

Thank for helping!:D

State taxes and federal taxes are wholly separate.
States taxes are paid to the state in which a person lives (such as New York or California).
Federal taxes are paid to the federal government (based in Washington, DC).

FACT 1: The federal government planned a tax amnesty program.
FACT 2: The federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.

The correct answer choice must explain why the percentage collected by the federal government will be less than that collected by state governments.

E: Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.
Here, state taxes are unpaid BY MISTAKE, while federal taxes are unpaid BY CHOICE, explaining why the federal government is expected to collect a far lower percentage of total tax than did state governments.

The correct answer is E.

GMATGuruNY wrote:

thuyduong91vnu wrote:Hi,

It should be out of topic, but could someone help to explain the differences between federal tax and state tax in the US? I find it difficult to understand as a non-native speaker. The tax amount that a delinquent has to pay the federal equals that paid the state, right? So what makes these delinquents not as willing to pay tax to the federal as they are to the state?

Thank for helping!:D

State taxes and federal taxes are wholly separate.
States taxes are paid to the state in which a person lives (such as New York or California).
Federal taxes are paid to the federal government (based in Washington, DC).

FACT 1: The federal government planned a tax amnesty program.
FACT 2: The federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.

The correct answer choice must explain why the percentage collected by the federal government will be less than that collected by state governments.

E: Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.
Here, state taxes are unpaid BY MISTAKE, while federal taxes are unpaid BY CHOICE, explaining why the federal government is expected to collect a far lower percentage of total tax than did state governments.

The correct answer is E.

Hi Mitch,

why do you consider C wrong?

Also, what is the question type? is it strengthen or solving paradox question?

thanks

Mo2men wrote: Hi Mitch,

why do you consider C wrong?

C: Federal tax delinquents usually must pay high financial penalties.
Since the amnesty program would eliminate these high penalties, C seems to CONTRADICT Fact 2 (that the federal government is expected to collect a far lower percentage of total tax owed by delinquents).
The correct answer choice must do the opposite -- it must EXPLAIN WHY the federal government is expected to collect a far lower percentage of total tax.
Eliminate C.

Also, what is the question type? is it strengthen or solving paradox question?

thanks

Since the question stem asks for an explanation, I would deem it a resolve-the-paradox CR.

GMATGuruNY wrote:
State taxes and federal taxes are wholly separate.
States taxes are paid to the state in which a person lives (such as New York or California).
Federal taxes are paid to the federal government (based in Washington, DC).

Hi Mitch,

Thank for your response. I still wonder whether the tax amount delinquents have to pay state differs from that paid the federal? I am assuming that those amounts are the same, just the way they are collected are different, so I couldn't undertand why the delinquents are more willing to pay tax to the state than they are to the federal

Hi everyone,

Here's my video explanation of the question. Hope you enjoy!

https://www.youtube.com/watch?v=aRYNe3Mzbtc

Rowan