Which of the following principles encourages a vertically equitable tax system?
A) Pay as you go
B) Economy
C) Income effects
D) Ability to pay principle
E) None of these

Name: Which of the following principles encourages a vertically equitable tax system? A) Pay as you go B) Economy C) Income effects D) Ability to pay principle E) None of these
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Question

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The ability to pay principle states that those who have a greater ability to pay taxes should pay more, thus encouraging a vertically equitable tax system.

Which of the Following Principles Encourages a Vertically Equitable Tax