tax system

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tax system

by phelps » Tue Jul 07, 2009 1:43 pm
Which of the following, if true, is the most logical completion of the argument below?
The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______
(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts
Source: — Critical Reasoning |

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by ssmiles08 » Tue Jul 07, 2009 3:06 pm
IMO A.

The blank should be in favor of some sort of tax benefit for savings. I think A fits here.

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by Sharma_Gaurav » Tue Jul 07, 2009 3:29 pm
My pick is A as well in the first go itself.

Argument says in long run tax system favours savings - and it is justified only by A that the tax system still gives some tax releif to increase savings.

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by mehravikas » Tue Jul 07, 2009 5:44 pm
IMO - A

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by james33 » Sun May 15, 2016 8:35 pm
I would go with option A as the correct option