GMAT Critical Reasoning
The government is considering legislation that would reduce tax benefits for parents opening college savings funds for their children. If passed, the new laws would result in greatly decreased tax benefits for parents who open such accounts. Therefore, if the new laws pass, many college-bound individuals will have difficulty covering their college costs, and some would not be able to attend.
The argument above assumes which of the following?
- A For most college-bound children, their parents' savings accounts are the only source of educational funding.
- B The legislation is being considered because many parents were misusing savings funds dedicated to their children's educational costs.
- C College-bound children cannot open savings funds separately from their parents.
- D Because of decreased tax benefits, some parents will not open college savings funds for their children.
- E Parents facing the new restrictions on college funds will find other investments to dedicate to their children's educational costs.
Correct Answer: D