QUESTION TEXT: Politician: A government that taxes incomes at a rate…
QUESTION TYPE: Method of Reasoning
CONCLUSION: The economist concludes that the politician is wrong.
REASONING: The politician claimed that lower taxes always produce higher revenue. The economist took him at his word, and pointed out that according to the politician’s logic, 0% taxes should produce the highest revenues.
ANALYSIS: The economist uses absurd logic to prove his point. He took the politician’s conclusion to its logical end. If lower taxes rates raise more money, then the lowest tax rate must raise the most money!
Unfortunately, that doesn’t work. 0% rates can’t raise anything. 0% of a large number is still $0.
___________
- The economist simply followed the politician’s principle to its logical conclusion. He didn’t state any other principles.
- The economist didn’t mention any real world examples.
- CORRECT. The “limiting case” means the most extreme case: 0%. And the conclusion is absurd. A 0% tax rate will never raise any taxes.
- The economist didn’t make an ad hominem attack. He just attacked the politician’s reasoning.
- Tempting, but the economist didn’t disagree with the politician’s premise, which was the first sentence. (A 100% tax rate produces no revenue.)
Recap: The question begins with “Politician: A government that taxes incomes at a rate”. It is a Method of Reasoning question. Learn more about LSAT Method of Reasoning questions in our guide to LSAT Logical Reasoning question types.
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