If vertical equity is being used as the basis of a tax, then taxpayers with a lesser ability to pay should:
A)contribute a smaller amount
B)contribute a larger amount
C)be less subject to administrative burdens of a tax
D)contribute the same amount as taxpayers with a greater ability to pay

Question

Quizplus · Accepted Answer

Vertical equity means that taxpayers with a higher ability to pay should contribute a larger amount compared to those with a lower ability to pay. Therefore, taxpayers with a lesser ability to pay should contribute a smaller amount.

If Vertical Equity Is Being Used as the Basis of a Tax