Progressive taxes can be justified as fair based on which of the following?
A) horizontal equity
B) vertical equity
C) benefits received
D) index of fairness principle
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Vertical equity is the principle that individuals with greater ability to pay, should pay more taxes. This principle supports the justification of progressive taxes as fair since those with higher income or wealth can afford to pay a higher percentage of their income or wealth towards taxes, to support public goods and services that benefit all members of society.

Progressive Taxes Can Be Justified as Fair Based on Which