What are vertical equity and horizontal equity associated with
A)the benefits principle of taxation
B)the ability-to-pay principle of taxation
C)taxes that have no deadweight losses
D)falling marginal tax rates

Question

Quizplus · Accepted Answer

Vertical equity and horizontal equity are concepts associated with the ability-to-pay principle of taxation, which suggests that taxes should be levied according to an individual's ability to pay. Vertical equity refers to the idea that those with greater ability to pay should contribute more, while horizontal equity means that those with similar ability to pay should contribute the same amount.

What Are Vertical Equity and Horizontal Equity Associated with