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According to some people, income tax should be done away wit
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Updated on: 03 Nov 2023, 04:39
Updated on: 03 Nov 2023, 04:39
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Question 1
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48% (02:03) correct
52% (01:47) wrong based on 58 sessions
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According to some people, income tax should be done away with in the US since there are several other ways to collect taxes. A few countries in Europe have successfully abolished income taxes by raising other taxes such as sales tax. Of course this makes products more expensive but with the added amount of money you would receive on your paycheck, you will still be better off than you were paying income taxes.
Which of the following, if true, provides the most support for the argument above?
(A) The prices of products in European countries, when converted into US dollars at current rates are very similar to their prices in the United States.
(B) The increase in prices of products because of the increased sales tax rate will not more than offset the benefit of not paying any income taxes.
(C) The legislative body in the United States has stated that it will support the move to abolish income tax.
(D) Apart from increasing sales tax, the government can also increase other special taxes such as those on petroleum products.
(E) The government has enough funds in reserve currently to be able to absorb any shock because of lowered tax collection.
Re: According to some people, income tax should be done away wit
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03 Oct 2018, 15:49
03 Oct 2018, 15:49
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B is the answer, but it can confuse someone if they don't read it carefully. The arguement is that the added money from your paycheck will have more value than the loss from the increased cost of goods. A doesn't prove anything about this arguement, it merely states that there isn't a confounding factor in the cost of goods between the US and Britain. Useful, but not really what we are looking for in an answer. C, D, and E don't relate to whether or not the paycheck increase will be larger than the costs increase. B says "the increased cost of goods due to increasing sales tax will not be greater than the benefit of the removal of income tax (increase in your take home pay)." This is the same thing we stated the arguement to be, and so it directly supports the arguement by effectively saying "what if the arguement was 100% correct."
Re: According to some people, income tax should be done away wit
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01 Jan 2019, 13:07
01 Jan 2019, 13:07
Choice B addresses the gap between premise and the intermediate conclusion - "you will still be better off than you were paying income taxes." Why? Just because I will get higher pay check? I won't be better off if I had to spend to spend more on sales tax than I would save on income tax. Choice B just states that this is not going to happen.
