Prep2012-Pack1-CR-036 VCR002665 Medium
A proposed change to federal income tax laws would eliminate deductions from taxable income for donations a taxpayer has made to charitable and educational institutions. If this change were adopted, wealthy individuals would no longer be permitted such deductions. Therefore, many charitable and educational institutions would have to reduce services, and some would have to close their doors.
The argument above assumes which of the following?
A. Without the incentives offered by federal income tax laws, at least some wealthy individuals would not donate as much money to charitable and educational institutions as they otherwise would have.
B. Money contributed by individuals who make their donations because of provisions in the federal tax laws provides the only source of funding for many charitable and educational institutions.
C. The primary reason for not adopting the proposed change in the federal income tax laws cited above is to protect wealthy individuals from having to pay higher taxes.
D. Wealthy individuals who donate money to charitable and educational institutions are the only individuals who donate money to such institutions.
E. Income tax laws should be changed to make donations to charitable and educational institutions the only permissible deductions from taxable income.
Prep2012-Pack1-CR-037 VCR002883 Medium
Certain politicians in the country of Birangi argue that a 50 percent tax on new automobiles would halt the rapid increase of automobiles on Birangi’s roads and thereby slow the deterioration of Birangi’s air quality. Although most experts agree that such a tax would result in fewer Birangians buying new vehicles and gradually reduce the number of automobiles on Birangi’s roads, they contend that it would have little impact on Birangi’s air-quality problem.
Which of the following, if true in Birangi, would most strongly support the experts’ contention about the effect of the proposed automobile tax on Birangi's air-quality problem?
A. Automobile emissions are the largest single source of air pollution.
B. Some of the proceeds from the new tax would go toward expanding the nonpolluting commuter rail system.
C. Currently, the sales tax on new automobiles is considerably lower than 50 percent.
D. Automobiles become less fuel efficient and therefore contribute more to air pollution as they age.
E. The scrapping of automobiles causes insignificant amounts of air pollution.
