Vertical-equity is most closely associated with which of the following goals or principles?
A)The horizontal-equity principle
B)The goal of economic efficiency
C)The goal of attaining social objectives
D)The ability-to-pay principle

Question

Quizplus · Accepted Answer

Vertical-equity is the principle of taxing individuals according to their ability to pay. This is closely associated with the ability-to-pay principle, which advocates for individuals with higher incomes to pay a larger portion of their income in taxes compared to those with lower incomes. Therefore, choice D is the best answer.

Vertical-Equity Is Most Closely Associated with Which of the Following