A progressive tax system is one which satisfies the principle of:
A)vertical equity
B)administrative efficiency
C)elimination of poverty
D)reduction in tax evasion

Question

Quizplus · Accepted Answer

A progressive tax system is designed to ensure vertical equity, which means that those who have a higher ability to pay taxes should pay a higher proportion of their income in taxes than those who have a lower ability to pay. This principle helps to ensure fairness and equity in the tax system. While administrative efficiency, elimination of poverty, and reduction in tax evasion may be desirable outcomes, they are not the defining principles of a progressive tax system.

A Progressive Tax System Is One Which Satisfies the Principle