The idea of two individuals being equally well off in the absence and the presence of taxation is
A)the benefits-received principle.
B)utility definition of horizontal equity.
C)time consistency of optimal taxation.
D)flat tax income schedule.

Question

Quizplus · Accepted Answer

The utility definition of horizontal equity suggests that individuals who are equally well off should remain equally well off even after taxation, maintaining their relative utility levels.

The Idea of Two Individuals Being Equally Well Off in the Absence