Critical Reasoning

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

A is the clear winner

Only A tells that there is tax relief on savings too

All other options talk of tax relief on borrowings only

IMO: A.


D also tells about encouragement for opening saving bank accounts, but that is done by banks and not government.

I did opted for A but E confused me equally....can somebody categorily find acceptable flaw in gmat terminology for E

BTW source of this question is paper test 52 16

maihuna wrote:I did opted for A but E confused me equally....can somebody categorily find acceptable flaw in gmat terminology for E

If I understand correctly "E" talk about "Tax due" and not "Tax relief"
If Tax is due on some saving then government doesn't favor saving i.e. it favors borrowing
while conclusion says govn. does not consistently favor borrowing or some time govn. favors saving.

I go with A)

The logical completion of the argument would be something that supports savings or something thats agianst borrowing.

A clearly does that
Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no 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

This would mean that Grootland’s tax system is indeed supporting savings and thus we can say that the syatem does not consistently favor borrowing over saving

Please do not post answer along with the Question you post/ask

Great question but I would have to differ wiht u on this. Whether there is an OA or not a convincing explanation must be given. If the user sees the OA and then responds to the question then bad for them. If not kudos for the right response & you are on the right path to in acquiring CR skills needed for the GMAT.

Chidcguy, I do respect your point of view also!

cramya wrote:

Please do not post answer along with the Question you post/ask

Great question but I would have to differ wiht u on this. Whether there is an OA or not a convincing explanation must be given. If the user sees the OA and then responds to the question then bad for them. If not kudos for the right response & you are on the right path to in acquiring CR skills needed for the GMAT.

Chidcguy, I do respect your point of view also!

I also think like Chidcguy. The OA ruins the quality of discussions. It is more easy to spot and fix shaky concepts during a discussion where nobody knows what the answer is FOR SURE.

OA does not mean anything in quant because it is just a check point but in verbal OA is major distraction. I also wonder what KARA thinks about this. I will PM her.

Respect the different view points but I will stick with mine since its not an unfair request.

The reason why I keep repeating about posting the OA's is because many times the users who post responses wait for days before knowing what the OA is. Its like making someone wait for something that they need the help from you for when u can hep em right now. This is how I look at it.Not necessary that others view it the same(may / may not)
Not referring to any one in particular but please post OA'S atleast after u see some responses and not wait 10-15 days before u release the OA. Not necessary that others view it the same(may / may not)

It's up to the individuals entirely-> some post the OA's with the questions and some dont.For our part we can request it and the user for his part does what he thinks is right.

IMO Fair game!

cramya wrote:Respect the different view points but I will stick with mine since its not an unfair request.

The reason why I keep repeating about posting the OA's is because many times the users who post responses wait for days before knowing what the OA is. Its like making someone wait for something that they need the help from you for. Not referring to any one in particular but please post OA'S atleast after u see some responses and not wait 10-15 days before u release the OA.This is how I look at it. Not necessary that others view it the same(may / may not)

But its up to the individuals entirely-> some post the OA's with the questions and some dont.For our part we can request it and the user for his part does what he thinks is right.

IMO Fair game!

you are talking about a case that pisses me off too. But I am talking about people who starts a thread to have a discussion to learn AND post OA after discussion in a timely manner. Active people not free-riders or some IMO folks. And also ALMOST EVERY QUESTION has been discussed before www.google.com is your best friend!

I agree with Logitech and sligtly differ with Craymya viewpoint, I am solving some CR's that I did logged as wrong one, and after lot lot time I was surprised to see I did 90% of them again wrong.
I did saw solutions then and somehow tries to fix my logic...but see after a while I have forgotten them all...reason is simple....for some questions that we are doing incorrectly and its not an simple mistake...we are bound to repeat it...let me clarify it with following two examples that has been discussed yesterday:

Surgical wound vs Zoo and pure acquarium: In my first attempt I did both wrong..in my second attempt first one came correct w/o lot of efforts while Zoo one again came wrong and I coudnt. Reason is here: Surgical one is mistake done in understanding what is being asked...if one understand and get some more thought he willnt be caught again...but Zoo acquaium the answer is un-convincing...why? let us see...its talk abt vaccationers vs visitors in premise...and one of the answer that talks about local is wrong while one that talks about metros and more nos of zoo vs pure acquarium is correct..why? Why the hell I am even supposed to know what an Metro is...when premise has to do nothing withthat..

Take this Headache some EnoSign CR..why I need to know that Sinus and headeache due to cold need to be same?

In these situation, when OA is there a person just need to convince a little while that no no since there are more no of pure acquarium outlet there are more visitors..hey u didnt understand that sinus headache can be cured by taking cold-headache mistake...I did it...that sort ofthing...

Believe me, yesterday I went throw 25 wrong CR's did repeat the mistake in 16 of them...looked on net and found no convincing answer that I can apply as a pattern on new questions....and the one that I have posted w/o OA I can see many wrong options are being discusses with confidence...that confidence converts in surity when OA is there...so I would like to make following proposal: Ban the OA for hard questions. Seems not too illogical.

btw coming back to this Q...taxes due is what that cause the pain...

I was stuck with B. Can any one explain why B is cannot be the answer?.

If there is no tax relief on the processing fee of the loans, then it makes borrowing as bad as saving money in the savings accounts.

pandeyvineet24 wrote:I was stuck with B. Can any one explain why B is cannot be the answer?.

If there is no tax relief on the processing fee of the loans, then it makes borrowing as bad as saving money in the savings accounts.

Vineet - you seem to have misread the question stem

Its states that
"it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no _______

now plug in B) - tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans.

B), thus, presents another example where there is "tax-relief" associated with borrowing. Only A) presents a case where there is "tax-relief" on something associated to "saving" - which is what we are looking for here.