Which of Adam Smith's requirements for a good tax system best supports the argument that the federal income tax rate structure should be progressive?

Question

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Adam Smith believed in the principle of proportionality, wherein each individual should contribute to the tax system in proportion to their ability to pay. This aligns with the concept of a progressive income tax rate structure, where individuals with higher incomes are taxed at a higher rate. Therefore, choice C, equality, best supports the argument that the federal income tax rate structure should be progressive.

Which of Adam Smith's Requirements for a Good Tax System