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Politician: All nations that place a high tax on income

Expert replies
by BTGmoderatorDC » Sun Jul 15, 2018 10:44 pm

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Answers

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E

Stats

Difficulty—

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.
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Source: — Critical Reasoning |

by deloitte247 » Fri Jul 20, 2018 10:18 pm
Option A - INCORRECT.
This option has weakens the politician argument. The politician has made his point on 30% of taxation at most for a favorable investment atmosphere and not 45% that sound outrageous and might scare investors and industrialist away and create no room for new industries and technological innovations.

Option B - CORRECT.
This option is the most suitable option to express the politician's argument. Making a great deal of money through high TAX on income collected from citizens is an insignificant factor in driving technological innovation. Because after making an outrageous accumulated fund the selfish politician will still savage most of it and use little to finance technological innovation and industrialization. However, with this motive or action the nation won't be able to maintain the value and way of life of the nation and this may lead the nation to loose its voice in World affairs.

Option C - INCORRECT.
Falling behind in the international arms race is of great disadvantage to a nation, because it implies that the nation is of poor growth, uncivilized and has no value for technology innovation.

Option D - INCORRECT.
Nations that lose influence in the world community suffer from a threat to their value system and way of life and this is caused by high tax place on income which thereby produce a negative incentive for technological innovations.

Option E - INCORRECT.
This option is also in support of the politicians argument but not strong enough. Allowing one's nation to lose its technological edge is foolishness and not just a mere historical accident, because this foolishness has caused the nation to suffer from threat on value system and way of life also causing the nation to lose their voice and position in the world affairs.
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