Question

Question 1

1. The idea that people in equal conditions should pay equal taxes is referred to as

   	a.	vertical equity.
   	b.	the ability-to-pay principle.
   	c.	horizontal equity.
   	d.	the marriage tax.

Question 2

1. Who pays a corporate income tax?

   	a.	owners of the corporation
   	b.	customers of the corporation
   	c.	workers of the corporation
   	d.	All of the above are correct.

Answer 1

1. Option C.

Horizontal equity refers to the condition where all the people belonging to the same economic conditions like equal income and assets should be treated equally.

That is, people having similar income, origin, status etc should pay equal taxes.

2. Option D.

Corporate income taxes are those taxes that are imposed on the income gains earned by people within a corporation.

These may include customers owners and workers of the corporation.