In the United States single-income married couples can reduce the amount of income tax they pay by income splitting. This means they pay less income tax than a married couple who earn the same income as a result of both people being employed. Income splitting is an example of
A) a horizontal equity problem because married people with two incomes pay more than similar single-income married people.
B) a vertical equity problem because married people with two incomes pay less than similar single-income married people.
C) a horizontal equity problem because married people with two incomes pay less than similar single-income married people.
D) a vertical equity problem because married people with two incomes pay more than similar single-income married people.
E) a benefits principle problem because people who benefit more pay less.
Correct Answer:
Verified
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