老PREP CR2 -50 求解答

jiangmengjuan

不明白为什么选C,这个选项怎么能够引起Vicious Cycle呢, 觉得D才对, 因为这些人永远不会付,所以这个恶性循环是肯定的.
50.(33327-!-item-!-188;#058&007566)

When people evade income taxes by not declaring taxable income, a vicious cycle results.Tax evasion forces lawmakers to raise income tax rates, which causes the tax burden on nonevading taxpayers to become heavier.This, in turn, encourages even more taxpayers to evade income taxes by hiding taxable income.

The vicious cycle described above could not result unless which of the following were true?

(A) An increase in tax rates tends to function as an incentive for taxpayers to try to increase their pretax incomes.

(B) Some methods for detecting tax evaders, and thus recovering some tax revenue lost through evasion, bring in more than they cost, but their success rate varies from year to year.

(C) When lawmakers establish income tax rates in order to generate a certain level of revenue, they do not allow adequately for revenue that will be lost through evasion.

(D) No one who routinely hides some taxable income can be induced by a lowering of tax rates to stop hiding such income unless fines for evaders are raised at the same time.

(E) Taxpayers do not differ from each other with respect to the rate of taxation that will cause them to evade taxes.

sdcar2010

Necessary assumption. Use negation.

If you negate C, you get: the lawmakers allow adequately for revenue that will be lost through evasion when they set the tax rates, then the lawmakers will not need to raise the tax rates over and over and start the vicious cycle. The whole argument falls apart. Thus, C is the correct answer.

sdcar2010

D) is not necessary. If at the beginning, the lawmaker already "forsaw" the existance of such tax-evaders and took into account such un-collectable tax when setting the tax rate higher, no vicious cycle will happen.