If a tax system is designed so that individuals with higher incomes pay more in taxes than individuals with lower incomes,the system achieves vertical equity.

Question

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Vertical equity means that individuals with greater ability to pay taxes (i.e. those with higher incomes) contribute a higher proportion of their income in taxes compared to those with lower incomes. Therefore, a tax system that is designed so that individuals with higher incomes pay more in taxes than individuals with lower incomes achieves vertical equity.

If a Tax System Is Designed So That Individuals with Higher