Asked by Savannah Pulliam on Jun 13, 2024
Verified
Vertical equity holds that those with greater ability to pay should pay more.
Vertical Equity
A principle in taxation stating that taxpayers with a higher ability to pay should contribute more in taxes than those with a lesser ability to pay.
- Comprehend the principles of horizontal and vertical fairness in tax policy.
Verified Answer
RA
Randy AndersonsJun 14, 2024
Final Answer :
True
Explanation :
Vertical equity is a principle in taxation that suggests individuals who earn more or have a greater ability to pay should contribute more in taxes, reflecting their higher income or wealth levels.
Learning Objectives
- Comprehend the principles of horizontal and vertical fairness in tax policy.