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britney_gao · 发表于 2003-5-26 22:46:00

Which of the following, if true, is the most logical completion of the argument below? The tax system of the Republic of Grootland ecourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on saving. Nvertheless, 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 loads
C tax relief in Grootland for interest that taxpayers are changed 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

the key is A.WHY?I CANT understand

mindfree · 发表于 2003-5-27 04:28:00

Explained before. It is very straightforward: the system discourages savings by collecting taxes on savings' interests, thus removing the tax relief for the income that is set aside for savings.

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