Consider two families,each of whom earn total income of $80 000,but that are different in many other respects.If each family is assessed income tax payable of $14 749,then it is very likely that the principle of is being violated.

Question

Quizplus · Accepted Answer

Horizontal equity is violated when two families with the same income are taxed differently due to other differing characteristics. In this case, both families have the same income and are taxed the same, so horizontal equity is not violated. However, if they are different in other respects and still taxed the same, it suggests a lack of consideration for those differences, which is a violation of horizontal equity.

Consider Two Families,each of Whom Earn Total Income of $80