According to the horizontal-equity principle of taxation,
A)individuals who receive the benefits of a good or service should bear a greater share of the tax burden.
B)individuals who are most able to pay should bear a greater share of the tax burden.
C)people in the same economic situation should be treated equally.
D)individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits.

Question

Quizplus · Accepted Answer

The horizontal-equity principle of taxation states that people in the same economic situation should be treated equally. It means that individuals with the same income and financial capabilities should pay the same amount of tax. This principle aims to ensure fairness and equality in the taxation system. Therefore, option C is the correct answer. Option A refers to the benefit principle of taxation, which states that those who benefit from a good or service should pay for it. Option B refers to the ability-to-pay principle, which states that those who have a greater ability to pay should contribute more. Option D is not related to the horizontal-equity principle of taxation.

According to the Horizontal-Equity Principle of Taxation