Which of the following best describes vertical equity?
A)All taxpayers should pay some taxes on their incomes
B)As income increases, taxes should increase
C)Persons with equal incomes should pay the same amount of taxes
D)A person with capital gains should pay less tax than a person with the same amount of salary income

Question

Quizplus · Accepted Answer

Vertical equity in taxation means that those who have a greater ability to pay, typically measured by higher income or wealth, should contribute more in taxes. This principle supports progressive tax structures where tax rates increase as income increases.

Which of the Following Best Describes Vertical Equity