If two families are identical with respect to size, income, general expenses, etc., and are taxed equally, we say that there is
A)horizontal equity.
B)vertical equity.
C)observance of the ability-to-pay principle.
D)intergenerational equity.

Question

Quizplus · Accepted Answer

Horizontal equity refers to the idea that two people or families in similar economic situations should be taxed equally. This means that if two families have the same level of income, size, and expenses, they should pay the same amount of taxes. Therefore, if two families are identical with respect to size, income, and general expenses, and are taxed equally, we say that there is horizontal equity.

If Two Families Are Identical with Respect to Size, Income