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Poppy: High taxes have a chilling effect on the economy. When individuals and corporations are taxed, they have less

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Poppy: High taxes have a chilling effect on the economy. When individuals and corporations are taxed, they have less

by BTGmoderatorDC » Fri Feb 28, 2020 4:43 pm
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

A. claiming that Poppy has exaggerated the adverse effects of high taxes

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

C. noting that Poppy has failed to adequately define the term “taxes”

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

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



OA B

Source: Princeton Review
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Source: — Critical Reasoning |
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Re: Poppy: High taxes have a chilling effect on the economy. When individuals and corporations are taxed, they have less

by deloitte247 » Sat Feb 29, 2020 6:16 pm
Premise: High taxes have a chilling effect on the economy - obtained from Poppy's argument.

Conclusion: Taxes generate funds for the government, and if it is lowered, the government will be forced to borrow more money, thus reducing the amount of credit available. Also, unable to borrow money easily will force businesses and individuals to limit their purchases - Lilly's objection.

Let's find which option supports Lilly's objection to Poppy's argument.

Option A - Incorrect
While this may seem to have an iota of truth, to some extent, it is still not the reason why Lilly disagrees with Poppy's claim.

Option B - Correct
Why Lilly's claim is not one-sided unlike Poppy; he acknowledged Poppy's claim, but, as well as emphasized the effect of lowered tax on the government, as it will also affect businesses and individuals.

From Lilly's claim, it is obvious that Poppy's argument focused more on how high taxes affect individuals and businesses, and will lead to an increase in unemployment, but, it doesn't portray any impact on the government. Based on this, Poppy's argument is not well sufficient enough regarding his knowledge of the effect of taxes on the economy in general. Therefore, this claim is the best fit to support Lilly's object to Poppy's argument.

Option C - Incorrect
This claim is weak and would not be sufficient enough for Lilly to prove a point.

Option D - Incorrect
Well, Lilly's objection in this passage is not on the comparison between the 'danger pose by reducing taxes' and 'maintaining current tax levels'. Instead, it demonstrates how 'reducing taxes' pose negative effects on the government, economy, individuals, and businesses.

Option E - Incorrect
This is similar to option D in explanation. Lilly's objection to Poppy's argument is not based on the comparison between the 'benefits of easy credit' and 'danger of unemployment'.
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