Suppose you were designing a tax based on horizontal equity, what aspect of assigning the tax would be the most difficult?
A)whether or not a taxpayer belongs to a high-income group
B)the level of transfer payments made to low-income groups
C)the source of income for taxpayers
D)determining the differences relevant to a family's ability to pay

Question

Quizplus · Accepted Answer

Determining the differences relevant to a family's ability to pay would be the most difficult aspect of assigning the tax based on horizontal equity. This requires taking into consideration factors such as household size, number of dependents, and other relevant socio-economic factors that may affect a family's ability to pay taxes. This can be complex and may require a comprehensive assessment of each taxpayer's financial circumstances.

Suppose You Were Designing a Tax Based on Horizontal Equity