Asked by Caleb Glenney on Jun 13, 2024

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Horizontal equity holds that

A) those with equal ability to pay should bear unequal tax burdens.
B) those with equal ability to pay should bear equal tax burdens.
C) those who benefit the most from government services should bear the higher tax burden.
D) those who benefit the most from government services should have the greatest voice in determining what gets produced.

Horizontal Equity

is a principle in taxation that mandates taxpayers with similar income or assets should be taxed at the same rate.

Tax Burdens

Tax burdens refer to the economic impact of taxes on individuals or corporations, often measured as a percentage of income or profits.

Ability to Pay

The principle suggesting that taxes should be levied according to an individual's or entity's capacity to pay, typically related to income or wealth levels.

  • Identify and understand the concepts of horizontal and vertical equity in taxation.
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RB
Raquel BrownJun 16, 2024
Final Answer :
B
Explanation :
Horizontal equity is a principle in taxation that states individuals with the same income or ability to pay should bear the same tax burden, hence option B is correct.