Which of the following would not be a failure of the horizontal equity concept?
A) Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax exempt interest.
B) Two taxpayers pay different amounts of property tax amounts on similar plots of land (i.e., same value) because one plot of land is used to raise crops.
C) Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more.
D) All of these.
E) None of these.

Question

Quizplus · Accepted Answer

Horizontal equity refers to the principle that taxpayers with similar income or assets should pay the same amount in taxes. Option C is not a failure of horizontal equity because the taxpayers have different estate values, which justifies different tax amounts.

Which of the Following Would Not Be a Failure of the Horizontal