Reading Comprehension

PT147 · S3 · P4 · Q22 Flat Tax Systems

A free, expert breakdown of this official LSAT Reading Comprehension question.

Save & drill this skill — build targeted practice sets from questions like this one
Video walkthroughs — watch every question solved step by step
81 official LSATs — as questions, timed sections & full-length tests

Passage A

This author is happy with the flat tax system and thinks that its usage so far in Estonia and the eight countries that followed is evidence that the flat tax system can successfully work in the real world:

- seems to be working as well in practice as it does on the blackboard (end of P1) - practical types who said flat taxes cannot work offer a further objection, once they are shown such taxes working

The author presents an Objection to flat tax systems in the 2nd paragraph, , and then the author responds to that objection in the 3rd paragraph.

Since you can exempt a bottom layer of money, you can keep the poorest people from paying any tax. And since the tax code is so greatly simplified, rich people end up paying their correct share, rather than hiring fancy tax lawyers to seek loopholes allowing them to avoid paying their full tax.

Passage B

This author prefers graduated tax systems over flat tax systems. He starts by defending graduated taxes, by Clarifying a Misconception.

Misconception -- in a graduated system, richer people pay a higher tax rate on their whole earnings than poorer people do. Reality -- in a graduated system, you only pay a higher tax rate on the dollars you make over a certain threshold.

The 2nd paragraph explain the logic behind this system: the first $20,000 you make (for example) goes straight to survival expenses like food / shelter / clothing. Taking some of that for tax would make life far harder. Once you've already made $50,000 (for example) then the next $20,000 aren't as essential to you. If you only got $14,000 of it you'd probably still be fine: middle-income earners have much greater flexibility in absorbing small fluctuations in income.

The last paragraph is where the author of B starts Challenging the Position of flat taxers. He basically is saying that flat tax recognize the logic of the 2nd paragraph, but their system is just less nuanced than it could be, and the effect is worse on the middle class.

22.

Both passages are concerned with answering which one of the following questions?

Can a flat tax be
Fails Both: Can vs. Should
The passages weren't debating whether a flat tax is possible, but rather whether it's desirable.
3% picked this
Do graduated progressive taxes treat
Too Narrow
Passage A barely mentions progressive taxes, but it does come up briefly at the end of the 2nd paragraph. Since we're told that in progressive systems, high-income earners forfeit a bigger share of their incomes than low-income earners, we could probably say that Passage A provides an answer of "no, graduated systems do not treat all taxpayers equally". The author of Passage B also touches on this, in the first paragraph, and explicitly says, "Yes, graduated progressive taxes treat all taxpayers equally". We could potentially leave this answer since both passages do cover it, but it's certainly not the main thrust of either passage. Flat Tax is what got the most airtime, so we'd expect that to be in the correct answer choice.
5% picked this
Correct
Can a flat tax be
Why this is right
This gets the most to the heart of the two passages: Flat tax -- thumbs up or thumbs down? Passage A implies that a flat tax can be fair. It raises an objection in the 2nd paragraph from people who think that flat taxes are unfair, since they seem to rule out in principle the idea of making richer people pay a bigger share than poorer people. The author then counters this idea with her last paragraph, implying that flat taxes are not unfair; they can force richer people to pay a bigger share than poorer people because of the exemption layer. Passage B begins by defending the idea that graduated taxes are fair to all taxpayers, since they tax higher dollars differently, not higher earners. And it ends by saying that in a flat tax system, middle-class earners have to pay more than in a graduated tax system. All that being said, I think this is a pretty unfair (pun intended) correct answer. Passage B clearly prefers graduated systems to flat tax systems, but that doesn't mean that Passage B is ever arguing that flat tax systems can / can't be unfair to all taxpayers. This is just one of those "it's the best option available, even though the answer is not written in a way that accurately captures what the passage said". Ultimately, it comes down to picking this answer or (B), and this one is aimed so much better at what both passages were primarily concerned with discussing. We can help ourselves like this by thinking, "Hey, just because you're concerned with answering a certain question doesn't mean you have to end up having a clear answer to that question!" It's probably fair to say that Passage B is evaluating the relative fairness of flat tax compared to graduated, even if there's no clear indication from B that a flat tax system can / can't be "fair" to all taxpayers.
Skill tested: Primary Purpose · how this choice captures the passage's function is the move to repeat next time.
87% picked this
What are some objections to
No Support Passage A
Passage A never mentions any objections to progressive taxes.
5% picked this
Do flat tax regimes reduce
No Support Passage B
Only the author of Passage A brings up the idea of higher earners eluding their taxes.
0% picked this

Continue the review in LSAT Lab

Save this question, watch the video walkthrough, and drill similar questions in your LSAT Lab account.

Save and practice this skill

LSAT Lab

Turn this review into a targeted study plan.

Save this question, drill more like it, watch the video walkthrough, and track your progress in your LSAT Lab account.

Start practicing free