Asked by
Christin Varghese
on Nov 17, 2024Verified
The notion that similar taxpayers should pay similar amounts of taxes is known as
A) vertical equity.
B) the benefits principle.
C) horizontal equity.
D) taxpayer efficiency.
Horizontal Equity
A principle in taxation and welfare distribution that posits individuals with similar income or ability to pay should be treated equally.
Vertical Equity
A concept in taxation that argues taxpayers with a greater ability to pay, such as those with higher income, should pay more in taxes.
Taxpayer Efficiency
The degree to which tax revenues are collected and used in an effective, cost-efficient, and minimal waste manner by the government.
- Recognize the principles of horizontal and vertical fairness in tax systems.
Verified Answer
OD
Learning Objectives
- Recognize the principles of horizontal and vertical fairness in tax systems.