Consider two families,each of whom earn total income of $80 000,but that are different in many other respects,such as the number of individuals to support.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 the principle that taxpayers with the same ability to pay should pay the same amount of tax. In this case, both families have the same total income, so they should pay the same amount of tax. However, they are paying different amounts of tax, which means that the principle of horizontal equity is being violated.

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