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CR - Veritas Prep - flat tax

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by hemant_rajput » Tue Aug 19, 2014 8:06 am
Need help with the this question [spoiler]OA:A[/spoiler]


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Source: — Critical Reasoning |

by GMATGuruNY » Thu Aug 21, 2014 2:54 am
Proponents of the so-called, 'Flat Tax' often argue that their plans for simplified tax laws will save money through the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes. This is a preposterous suggestion since it is obvious that any tax, no matter how simple, will require an enforcement and collection agency to ensure that citizens comply with the law and contribute their required amounts.

The conclusions above would be most strongly supported by which of the following facts, if true?
  • A. In a survey of present and historical taxation agencies, it is found that there is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
    B. some flat tax advocates suggest a fixed percentage of an individual' income be collected annually whereas others focus on a value-added tax that is collected at each retail purchase the individual makes.
    C. though described as flat, some of these alternative tax proposals actually incorporate considerable complexity.
    D. many flat tax proposals depend on the cost savings of a projected reduction in tax collection costs in order to maintain a balanced budget.
    E. polls indicate that despite the initial appeal of a simplified tax code, voters are skeptical of flat tax proposals.
Proponents' plan: Institute a "flat tax."
Expected Result: The elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes.

The argument concludes that proponents of the flat tax are WRONG.
To support the conclusion, the correct answer must BREAK THE LINK between the flat tax and the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes.

A: There is little relationship between the size of the tax collection agency and the complexity of the tax code it enforces.
Thus, instituting a flat tax is unlikely to lead to the elimination of much of the complex apparatus currently devoted to enforcing the collection of income taxes -- STRENGTHENING the conclusion that proponents of the flat tax are WRONG.

The correct answer is A.
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