Vertical equity is the idea that
A) taxpayers with a greater ability to pay should bear a greater share of the taxes.
B) people should pay taxes equal to the benefits they receive from public benefits.
C) as income rises, taxes should be efficient, not equitable.
D) the marriage tax is equitable.
E) taxes must be fairest to people with the largest incomes.

Question

Quizplus · Accepted Answer

Vertical equity is the principle that states taxpayers with a greater ability to pay should bear a greater share of the taxes. It suggests that people who earn more should pay a higher percentage of their income in taxes than people who earn less. This idea is based on the concept of progressive taxation, where tax rates increase as income levels rise.

Vertical Equity Is the Idea That