PT4.S4.Q1 - Tax reform in the interest of low-income taxpayers

I selected choice A, but the right answer is B. Can someone go over the answers and clarify please?

Comments

  • claremontclaremont Core Member
    590 karma

    My interpretation of the stimulus was basically new tax reform is in the interest of low-income taxpayers because it lowers their annual tax burden. But what if the new tax reform has some unforeseen or unintended consequence that harms low-income taxpayers? What if sales or gas taxes go up? That's my mindset as I go into the ACs.

    AC A. If anything this strengthens the argument. Maybe low-income people will also have the added benefit of not having to pay accountants to do their taxes?

    AC B. This weakens the argument. The new tax reforms laws would save low-income taxpayers on average anywhere from $100-300 dollars, but if their rent increases on average $40 a month, they'll be spending on average $480 more per year on rent.

    AC C. So what? How does this weaken the argument that the new tax reform law is in the interest of low-income taxpayers?

    AC D. This strengthens the argument. In addition to having a lower annual tax burden they'll also be able to deduct cost of child-care expenses.

    AC E. This strengthens the argument.

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