If an accountant makes $80,000 and after deductions pays $8,000 in taxes while a secretary makes $35,000 and after deductions pays $4,000 in taxes,this is an example of

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Quizplus · Accepted Answer

This is an example of vertical equity as the accountant, who earns more, pays a higher amount in taxes compared to the secretary, who earns less. This system follows the principle of ability to pay, as those who earn more can afford to pay more in taxes.

If an Accountant Makes $80,000 and After Deductions Pays $8,000