PrepTest 147, Section 3, Question 24

ApplicationDifficulty4 of 5
Passage 4Flat and graduated taxation: simplicity, progressivity, and fairness
The questionFull text in your LawHub copy of PrepTest 147

Passage A In 1994, Estonia became the first(490 more words not shown)

Passage A(253 more words not shown)

Passage B(245 more words not shown)

Which one of the following,(30 more words not shown)

Reading the passage

Who ends up paying? B’s final objection is that if poorer and richer taxpayers pay less while total revenue remains unchanged, middle-income taxpayers must cover the difference. Evidence that their taxes actually rise would support that concern over A’s favorable account.

Working the answers

  • A

    Unchanged revenue does not tell us which groups are supplying it. It is compatible with B’s prediction, but we still need evidence about the distribution of the payments.

  • B

    Simpler codes fit A’s defense. Simplification does not establish B’s concern that the middle class bears more of the burden.

  • C

    High earners’ belief that they remain overtaxed does not tell us whether middle earners’ payments have risen or whether the new burden is distributed as B predicts.

  • D
    Correct

    Higher payments by middle-income taxpayers are the result B warns about. This supplies evidence of the particular burden shift, rather than merely showing that the system collects money or is easier to administer.

  • E

    Legislators might favor returning to graduated taxes for many reasons. Without knowing why, their preference does not establish the middle-class burden B identifies. D gives us evidence of the actual effect at issue.

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