When assessing a tax system,"vertical equity" refers to
A)equity within a given income group.
B)equity across income groups.
C)equity between corporate entities.
D)unequal treatment of persons with unequal incomes.
E)equity across different periods of time.

Question

Quizplus · Accepted Answer

Vertical equity in a tax system refers to the fairness or equity of the tax burden across different income groups. It pertains to the extent to which individuals with higher incomes pay a proportionately higher share of taxes than those with lower incomes. Therefore, option B, which refers to equity across income groups, is the correct answer. Options A, C, D, and E are incorrect as they do not relate to vertical equity.

When Assessing a Tax System,"vertical Equity" Refers to