Question

In order to raise revenue, the federal government planned a tax amnesty program that allows tax delinquents to pay all owed tax without added financial penalty. However, economists projected that the federal government would collect a far lower percentage of total tax owed by delinquents than did state governments implementing similar programs.

Answer 1

The correct option is E: "Unlike most federal tax delinquents, most state tax delinquents fail to pay state tax because of an oversight rather than a decision not to pay."

Explanation:

Option A is not the correct answer because it is out of context

Option B is also out of context because what we are looking for is a connection between defaulters at state and federal level

Option C is also wrong because it would lead to the direct opposite of the projection by economists.

Option D is also wrong because once again it is out of context.

Option E is correct