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The state tax

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The state tax

by GmatKiss » Fri Mar 09, 2012 9:11 am
State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.

The state tax plan outlined above assumes that

A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals

IMO: B
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by [email protected] » Sat Mar 10, 2012 12:51 am
Guyzz please use the spoiler type the OA as well. That makes it easier for us to know how are we doing in the difficult questions.

State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations.

The state tax plan outlined above assumes that

A) federal tax officials will not attempt to collect back taxes in the same manner
B) stiff fines are not the only way to collect past due corporate taxes
C) corporations tend to be delinquent in their taxes for the same length of time that individual taxpayers are
D) past due taxes cannot be collected without a reduction in penalties
E) penalties for delinquent corporations will have to be reduced by the same percentage as were penalties for delinquent individuals


According to me the answer is C.

This is a supporter assumption model question.

The basic premise for the state official's decision in deducting penalties for the corporations to pay the back penalties is the success that the state officials had in the individual's case.

Hence the option should basically form a relationship between the individuals and the corporations.

Option E looks good but it uses the word have to and hence not appropriate...

Option D is the inference that we can draw from the statements given.

Option C is the correct answer as it draws a general link or a bridge between the individuals and the corporations.

Hope this is right and hope the explanation really helps...
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by LalaB » Sat Mar 10, 2012 1:40 am
C is out of scope, since nowhere is mentioned about the length of time

if u negate option B, u will see that B is correct.

btw, this question is already discussed here -https://www.beatthegmat.com/state-tax-plan-t66830.html
and GmatKiss has participated in this discussion
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by [email protected] » Sat Mar 10, 2012 3:02 am
Thanks LalaB... stay in touch...
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by mankey » Sat Mar 10, 2012 6:33 am
Why not D.

Someone please help resolve B vs D.

Thanks.
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by patanjali.purpose » Sat Mar 10, 2012 7:35 am
mankey wrote:Why not D.

Someone please help resolve B vs D.

Thanks.
State tax officials, having had considerable success in persuading delinquent individuals to pay their back taxes through the incentive of reduced penalties, plan to adopt a similar approach in order to collect past due taxes from corporations. The state tax plan outlined above assumes that
Conclusion: (though not explictly mentioned) Officials will be successful in persuading corporations to pay past due taxes.
D) past due taxes cannot be collected without a reduction in penalties
Negate: past due taxes CAN be collected without a reduction in penalties. Note, this choice says past taxes CAN be collected by alternate method (without reduction in penalties), but the argument says us to provide an evidence that can prove that OFFICIALS WILL INDEED BE ABLE TO TAKE TAXES FROM CORPORATES BY REDUCING PENALITIES.

Lets see again: Arguent is concerned about BY REDUCING PENALTIES, OFFICIALS CAN COLLECT TAXES; D says WITHOUT REDUCING PENALTIES, OFFICIALS CAN COLLECT TAXES. They are TWO different things, two different approaches AND therefore D do not have any impact on conclusion.
B) stiff fines are not the only way to collect past due corporate taxes
Negation - Stiff Fines are the ONLY WAY to collect past due. Compare this with "BY REDUCING PENALTIES, OFFICIALS CAN COLLECT TAXES" - This negation WEAKENS the argument. IMO
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