Which of the following principles encourages a vertically equitable tax system?
A) None of the choices are correct.
B) Economy.
C) Ability to pay principle.
D) Pay as you go.
E) Income effects.

Question

Quizplus · Accepted Answer

The ability to pay principle states that those who can afford to pay more taxes should do so, which creates a system that is vertically equitable. This principle aims to ensure that individuals with higher incomes pay a higher proportion of their income in taxes, while those with lower incomes pay less.

Which of the Following Principles Encourages a Vertically Equitable Tax