tax rates

okigbo wrote:hmm..I went with C..
If financial penalties are higher for federal than state, then states would collect more %-wise if financial penalties are forgiven..

Where am I going wrong in my logic?

Thanks.

maihuna wrote:In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.
Which of the following, if true, would most contribute to an explanation of the economists' projections?
A. Tax amnesty programs are only successful if they are widely publicized.
B. Most people who honestly pay their state tax are equally honest in paying their federal tax.
C. Although federal tax delinquents usually must pay high financial penalties, the states require far lower financial penalties.

From little different perspective
If Federal require high penalties than any opportunity which wave off this penalties should have more takers than the state which have less penalties...
D. The state tax rate varies considerably from state to state, but the federal tax is levied according to laws which apply to citizens of all the states.
E. Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.

Seems to be correct if most of the people who have decided to pay have paid the federal tax on time whereas other who do not want may not be attracted by the offer to wave off the penalty. In State people will be attracted because they failed to pay due to oversight.[spoiler]Answer:D/E[/spoiler]

maihuna wrote:In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.
Which of the following, if true, would most contribute to an explanation of the economists' projections?
A. Tax amnesty programs are only successful if they are widely publicized.
B. Most people who honestly pay their state tax are equally honest in paying their federal tax.
C. Although federal tax delinquents usually must pay high financial penalties, the states require far lower financial penalties.

From little different perspective
If Federal require high penalties than any opportunity which wave off this penalties should have more takers than the state which have less penalties...
D. The state tax rate varies considerably from state to state, but the federal tax is levied according to laws which apply to citizens of all the states.
E. Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.

Seems to be correct if most of the people who have decided to pay have paid the federal tax on time whereas other who do not want may not be attracted by the offer to wave off the penalty. In State people will be attracted because they failed to pay due to oversight.[spoiler]Answer:D/E[/spoiler]

maihuna wrote:In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.
Which of the following, if true, would most contribute to an explanation of the economists' projections?
A. Tax amnesty programs are only successful if they are widely publicized.
B. Most people who honestly pay their state tax are equally honest in paying their federal tax.
C. Although federal tax delinquents usually must pay high financial penalties, the states require far lower financial penalties.
D. The state tax rate varies considerably from state to state, but the federal tax is levied according to laws which apply to citizens of all the states.
E. Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay.
[spoiler]Answer:D/E[/spoiler]