The taxation principle that says people with equal incomes should pay equal taxes is called

Question

Quizplus · Accepted Answer

Horizontal equity means treating people with equal incomes equally when it comes to taxation. It ensures that taxpayers with similar income levels pay similar amounts of taxes, which is a fair and just taxation principle. A progressive tax system, on the other hand, means that people with higher incomes pay a higher percentage of their income in taxes, while a regressive tax system means that people with lower incomes pay a higher percentage of their income in taxes. Therefore, A) Horizontal equity is the correct answer to the given question.

The Taxation Principle That Says People with Equal Incomes Should