A tax system achieves equity when:

Question

Quizplus · Accepted Answer

Equity in a tax system means that taxes are distributed fairly according to society's definition of fairness. This ensures that everyone pays their fair share and that the burden of taxation is not disproportionately borne by any one group. While minimizing the costs of tax collection and efficiency are important factors in a tax system, they are not the primary goal of achieving equity. Lump sum taxes are not relevant to achieving equity because they do not take into account individual income or ability to pay.

A Tax System Achieves Equity When