According to vertical equity,what should taxpayers with a greater ability to pay taxes do
A)They should contribute a decreasing proportion of each increment in income to taxes.
B)They should contribute a larger amount.
C)They should be less subject to administrative burdens of a tax.
D)They should be less subject to tax distortions that lead to deadweight losses.

Question

Quizplus · Accepted Answer

According to vertical equity, taxpayers with a greater ability to pay taxes should contribute a larger amount. This ensures that the burden of taxation is distributed fairly among taxpayers based on their ability to pay. When a progressive tax system is in place, higher-income earners pay a larger proportion of their income in taxes than lower-income earners.

According to Vertical Equity,what Should Taxpayers with a Greater Ability