Logic Breakdown

Passage Summary: Most countries tax income, but that doesn't help people save money. To fix their economies, these countries need people to save more. Taxing what people buy instead of what they earn would be a better way to encourage that saving.

Reasoning: Income taxes do not encourage savings, whereas consumption taxes do; furthermore, increasing savings is the only way for these countries to improve their economies.

Analysis: This is a 'Complete the Argument' task, which essentially asks for a valid inference. The economist has laid out a clear path: the goal is economic improvement, the requirement for that goal is higher savings, and the tool to achieve those savings is a consumption tax. The logical 'next step' is to recommend that these countries shift their tax structure from income to consumption. Look for an answer that synthesizes these facts into a policy recommendation.

Passage Stimulus

Passage Redacted

Unlock Full Passage

16.

Which one of the following most logically completes the economist's argument?

Correct Answer
D
D draws the warranted policy recommendation: revise tax laws to focus on taxing consumption rather than income, aligning with the premises about savings being the only path to improvement and consumption taxes encouraging savings.
Upgrade Your Prep

Ready to go beyond free explanations?

LSAT Perfection is the #1 modern LSAT prep platform, trusted by thousands of students for comprehensive test strategies, advanced drilling, and full analytics on every PrepTest.

Detailed explanations for 59 PrepTests
Advanced drillset builder
Personalized analytics
Built-in Wrong Answer Journal
Explore Perfection Plus for full LSAT prep