Assuming that we can properly measure ability to pay,how do we use the principle of vertical equity to determine how much someone with greater ability to pay should pay in taxes?
A)By integrating it with the principle of horizontal equity.
B)Through reference to the benefit principle.
C)By looking at elasticities of demand for various income quintiles for the good in question.
D)We cannot use the principle of vertical equity to answer this question.

Question

Quizplus · Accepted Answer

Vertical equity is a principle that suggests those with a greater ability to pay should pay more in taxes, but it does not specify how much more they should pay.

Assuming That We Can Properly Measure Ability to Pay,how Do