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Poppy's argument

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by veenu08 » Sun Oct 06, 2013 6:48 am
Poppy: High taxes have a chilling effect on the
economy. When individuals and corporations are
taxed, they have less money to spend. Demand for
products and services is reduced, causing unemployment
to increase. Taxes must be lowered.

Lilly: But you must also consider that taxes generate
funds for the government. If taxes are lowered, the
government will be forced to borrow more money,
thus reducing the amount of credit available. Unable
to borrow money easily, businesses and individuals
will be forced to limit their purchases.

Lilly objects to Poppy's argument by

claiming that Poppy has exaggerated the
adverse effects of high taxes

indicating that Poppy has based his argument
on insufficient evidence about the effects of
taxes on the economy

noting that Poppy has failed to adequately
define the term "taxes"

demonstrating that the danger of reducing
taxes is far more severe than the threat of
maintaining them at current levels

suggesting that the economic benefits of easy
credit outweigh the danger of unemployment

can some explain me why D is incorrect
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by vinay1983 » Sun Oct 06, 2013 7:07 am
Is it E

D-We are not speaking about maintaining taxes here. The discussion is either to increase or decrease taxes.
You can, for example never foretell what any one man will do, but you can say with precision what an average number will be up to!
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by theCodeToGMAT » Sun Oct 06, 2013 7:20 am
{D} - Lily isn't doing that(demonstrating the severity)... she is just trying to point out that Poppy should also consider more data/scenario. "

According to me, Answer is [spoiler]{B}[/spoiler]

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by [email protected] » Mon Oct 07, 2013 1:15 am
IMO 'B'
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by rakeshd347 » Tue Oct 08, 2013 12:28 am
veenu08 wrote:Poppy: High taxes have a chilling effect on the
economy. When individuals and corporations are
taxed, they have less money to spend. Demand for
products and services is reduced, causing unemployment
to increase. Taxes must be lowered.

Lilly: But you must also consider that taxes generate
funds for the government. If taxes are lowered, the
government will be forced to borrow more money,
thus reducing the amount of credit available. Unable
to borrow money easily, businesses and individuals
will be forced to limit their purchases.

Lilly objects to Poppy's argument by

claiming that Poppy has exaggerated the
adverse effects of high taxes

indicating that Poppy has based his argument
on insufficient evidence about the effects of
taxes on the economy

noting that Poppy has failed to adequately
define the term "taxes"

demonstrating that the danger of reducing
taxes is far more severe than the threat of
maintaining them at current levels

suggesting that the economic benefits of easy
credit outweigh the danger of unemployment

can some explain me why D is incorrect
It should be B
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by GMATGuruNY » Tue Oct 08, 2013 8:43 am
veenu08 wrote:Poppy: High taxes have a chilling effect on the
economy. When individuals and corporations are
taxed, they have less money to spend. Demand for
products and services is reduced, causing unemployment
to increase. Taxes must be lowered.

Lilly: But you must also consider that taxes generate
funds for the government. If taxes are lowered, the
government will be forced to borrow more money,
thus reducing the amount of credit available. Unable
to borrow money easily, businesses and individuals
will be forced to limit their purchases.

Lilly objects to Poppy's argument by

claiming that Poppy has exaggerated the
adverse effects of high taxes

indicating that Poppy has based his argument
on insufficient evidence about the effects of
taxes on the economy

noting that Poppy has failed to adequately
define the term "taxes"

demonstrating that the danger of reducing
taxes is far more severe than the threat of
maintaining them at current levels

suggesting that the economic benefits of easy
credit outweigh the danger of unemployment
How does Lilly object to Poppy?
By pointing out that Poppy's argument considers only the EFFECTS OF HIGH TAXES.
What about the EFFECTS OF LOWERING TAXES?
The government will be forced to borrow more money, thus reducing the amount of credit available. Unable to borrow money easily, businesses and individuals will be forced to limit their purchases.
In other words, Lilly objects by doing the following:
B: indicating that has Poppy has based his argument on insufficient evidence about the effects of taxes on the economy.

The correct answer is B.

D: demonstrating that the danger of reducing taxes is far more severe than the threat of maintaining them at current levels.
Beware answer choices that make COMPARISONS.
LIlly never claims that lowering taxes would be WORSE that maintaining them at current levels.
She merely points out that lowering taxes will have negative effects that Poppy has not CONSIDERED.
Eliminate D.
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