Refer to Table 12-1.In this tax system which of the following is possible?

Question

Quizplus · Accepted Answer

Vertical equity is achieved when taxpayers with higher incomes pay a higher percentage of their income in taxes. Horizontal equity is achieved when taxpayers with the same income pay the same amount of taxes. In this tax system, both vertical and horizontal equity are possible because the tax rates are progressive, meaning that taxpayers with higher incomes pay a higher percentage of their income in taxes.