Nations

Politician: All nations that place a high tax on income produce thereby a negative incentive for technological innovation, and all nations in which technological innovation is hampered inevitably fall behind in the international arms race. Those nations that, through historical accident or the foolishness of their political leadership, wind up in a strategically disadvantageous position are destined to lose their voice in the world affairs. So if a nation wants to maintain its value system and way of life, it must not allow its highest tax bracket to exceed 30 percent of income.

Each of the following, if true, weakens the politician’s argument EXCEPT:

(A) The top level of taxation must reach 45 percent before taxation begins to deter inventors and industrialists from introducing new technologies and industries.
(B) Making a great deal of money is an insignificant factor in driving technological innovation.
(C) Falling behind in the international arms race does not necessarily lead to a strategically less advantageous position.
(D) Those nations that lose influence in the world community do not necessarily suffer from a threat to their value system or way of life.
(E) Allowing one’s country to lose its technological edge, especially as concerns weaponry, would be foolish rather than merely a historical accident.