The marriage tax problem in the U.S.tax code is a problem involving which of the following?
A) benefits received principle
B) the ability-to-pay principle
C) a conflict between horizontal and vertical equity
D) vertical equity
E) incidence of fairness principle

Question

Quizplus · Accepted Answer

The marriage tax problem involves a conflict between horizontal and vertical equity. Horizontal equity means that taxpayers with similar incomes should pay similar amounts of tax, while vertical equity means that taxpayers with higher incomes should pay more tax than those with lower incomes. The marriage tax penalty occurs when a married couple pays more in taxes than they would if they were single and filing separately, which violates horizontal equity. However, eliminating the penalty could also violate vertical equity because some high-income couples would receive a larger tax break than low-income couples.

The Marriage Tax Problem in the U