Many economists hold that keeping taxes low helps to spur economic growth, and that low taxes thus lead to greater national prosperity. But Country X, which has unusually high taxes, has greater per-capita income than the neighboring Country Y, which has much lower taxes. Some politicians have concluded from this that high taxes do not hinder national prosperity.
The politicians' reasoning is most vulnerable to criticism on which of the following grounds?
A) It overlooks the possibility that even if Country X reduced its taxes, it would not experience greater national prosperity in the long term.
B) It confuses a claim that a factor does not hinder a given development with the claim that the same factor promotes that development.
C) It fails to adequately address the possibility that Country X and Country Y differ in relevant respects other than taxation.
D) It fails to take into account that the per-capita income of a country does not determine its rate of economic growth.
E) It assumes that the economists' thesis must be correct despite a clear counterexample to that thesis.
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The politicians' reasoning is most vulnerable to criticism on which of the following grounds?
A) It overlooks the possibility that even if Country X reduced its taxes, it would not experience greater national prosperity in the long term.
B) It confuses a claim that a factor does not hinder a given development with the claim that the same factor promotes that development.
C) It fails to adequately address the possibility that Country X and Country Y differ in relevant respects other than taxation.
D) It fails to take into account that the per-capita income of a country does not determine its rate of economic growth.
E) It assumes that the economists' thesis must be correct despite a clear counterexample to that thesis.
CR55190.02