The concept of vertical equity states that:
A) equals should be treated equally in a tax system.
B) unequals should be treated equally in a tax system.
C) equals should be treated unequally in a tax system.
D) unequals should be treated unequally in a tax system.

Question

Quizplus · Accepted Answer

The concept of vertical equity states that unequals should be treated unequally in a tax system. This means that individuals with higher incomes or wealth should pay a higher proportion of taxes than those with lower incomes. This is based on the idea that the ability to pay taxes increases along with a person's income or wealth.

The Concept of Vertical Equity States That