GMATNinja , KarishmaB
Conclusion: the lower the income, the higher the annual percentage rate at which the income is taxed.
I have well understood the question and chose A as the answer but I can't seem to understand why the amount has to be equal across income levels. For example, if a $100 income guy spent $100 on a product and on the other hand, a $100000 income guy spent $1000 on the same product, the $100 income guy is paying 7% of his total income in sales tax and the $100000 income guy is paying 0.07% of his total income in sales tax.
I mean, isn't our conclusion still holding without the added premise?
Conclusion: the lower the income, the higher the annual percentage rate at which the income is taxed.
I have well understood the question and chose A as the answer but I can't seem to understand why the amount has to be equal across income levels. For example, if a $100 income guy spent $100 on a product and on the other hand, a $100000 income guy spent $1000 on the same product, the $100 income guy is paying 7% of his total income in sales tax and the $100000 income guy is paying 0.07% of his total income in sales tax.
I mean, isn't our conclusion still holding without the added premise?
Statistics : Posted by pranjalshah • on 18 Jan 2010, 07:10 • Replies 19 • Views 55960
