Asked by Katherine Fortune on Jun 06, 2024
Verified
A lump sum tax can never have horizontal equity.
Lump Sum Tax
A type of tax that is a fixed amount, no matter the change in circumstance of the taxed entity.
Horizontal Equity
The idea that taxpayers with similar abilities to pay taxes should pay the same amount
- Grasp the principles of horizontal and vertical equity in taxation.
Verified Answer
DA
Dylan AllmenJun 07, 2024
Final Answer :
False
Explanation :
A lump sum tax, by definition, is the same for everyone regardless of their income or wealth, thus inherently maintaining horizontal equity as it treats all individuals equally without consideration of their differing abilities to pay.
Learning Objectives
- Grasp the principles of horizontal and vertical equity in taxation.