wunderbar03 wrote:
Official Guide for GMAT Verbal Review, 2nd Edition
Practice Question
Question No.: 69
Page: 144
Difficulty:
Practice Question
Question No.: 69
Page: 144
Difficulty:
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?
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