Which of the following statements about vertical equity is false?
A) Vertical equity focuses on a fair rate structure instead of a fair measurement of the tax base.
B) If persons with greater ability to pay owe more tax than persons with lesser ability to pay, the tax is vertically equitable.
C) A tax with a single percentage rate is not vertically equitable.
D) None of these choices are false.

Question

Quizplus · Accepted Answer

A tax with a single percentage rate, such as a flat tax, is not considered vertically equitable because it does not account for differences in taxpayers' ability to pay. Vertical equity requires that those with greater ability to pay should pay more, which is not achieved with a flat tax rate.

Which of the Following Statements About Vertical Equity Is False