Asked by Potiere Nmenie on May 12, 2024
Verified
Vertical and horizontal equity are widely accepted and applying them to evaluate a tax system is always straightforward.
Vertical Equity
A principle of tax fairness that posits individuals with a greater ability to pay taxes should contribute more, promoting a progressive taxation system.
Horizontal Equity
The principle that individuals with similar income and assets should be treated equally by the taxation system.
- Become familiar with the basic tenets of horizontal and vertical equity within tax systems.
Verified Answer
KC
Kimberly CrymesMay 15, 2024
Final Answer :
False
Explanation :
While vertical and horizontal equity are widely accepted principles for evaluating tax systems, applying them is not always straightforward due to differing interpretations of fairness and the complexity of tax systems.
Learning Objectives
- Become familiar with the basic tenets of horizontal and vertical equity within tax systems.