Joan's income is $60,000 and she pays $6,000 in taxes.Juan's income is $40,000 and he pays $7,000 in taxes.This situation violates

Question

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Vertical equity is violated when individuals with different income levels pay different tax rates. In this case, Joan's income is higher than Juan's income, but she pays a lower tax rate ($6,000/$60,000 = 0.1) compared to Juan's tax rate ($7,000/$40,000 = 0.175). This violates the principle of vertical equity, which states that individuals with higher incomes should pay a higher proportion of their income in taxes.

Joan's Income Is $60,000 and She Pays $6,000 in Taxes