Vertical equity means that
A)taxpayers with the same amount of income should pay the same amount of tax.
B)taxpayers with larger amounts of income should pay more tax than taxpayers with lower amounts of income.
C)all taxpayers should pay the same tax.
D)None of the above.

Question

Quizplus · Accepted Answer

Vertical equity refers to the principle that those who have a greater ability to pay taxes should contribute a larger share of their income. Therefore, taxpayers with larger amounts of income should pay more tax than taxpayers with lower amounts of income. This ensures a fair and equitable distribution of the tax burden. Hence, option B is the correct answer.

Vertical Equity Means That