The taxation principle that says people with higher incomes should pay more in taxes than those with lower incomes is called

Question

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The principle that people with higher incomes should pay more in taxes than those with lower incomes is called vertical equity. A flat tax system (A) would mean that everyone pays the same amount regardless of income, while a regressive tax system (B) would mean that people with lower incomes pay a higher percentage of their income in taxes. Horizontal equity (D) refers to the principle that people in similar financial situations should be subject to similar tax burdens.

The Taxation Principle That Says People with Higher Incomes Should