The idea that two taxpayers in the same economic circumstances should pay the same level of taxes is known as the
A)ability-to-pay principle.
B)vertical-equity principle.
C)horizontal-equity principle.
D)benefits-received principle.

Question

Quizplus · Accepted Answer

The horizontal-equity principle is the idea that taxpayers in similar economic circumstances should pay the same level of taxes. It is different from the ability-to-pay principle, which argues that those who earn more should pay a higher percentage of their income in taxes, and the benefits-received principle, which suggests that those who benefit from government programs or services should pay for them through taxes. The vertical-equity principle, meanwhile, states that those with higher incomes should pay a higher percentage of their income in taxes.

The Idea That Two Taxpayers in the Same Economic Circumstances