GMAT Critical Reasoning (CR) | Re: In order to raise revenue, the federal government planned a

Hi,

In this question, we do not know the absolute values of tax owned by Fed and State tax delinquents. The Federal government proposes a penalty exemption program to encourage delinquents to pay the tax they owe and the State government plans a 'similar' program (mentioned in the last line).

Now, the prediction is that the federal government will collect afar lower percentage of tax owned by tax delinquents than the state government will. This implies that the exemption of penalty acts as
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