Option C.
The principle of Horizontal equity states that equals should be treated equally. It is an economic theory that states that individuals with similar incomes and assets should pay same amount in taxes.
Thus, the taxation principle that says people with equal incomes should pay equal taxes is known as principle of Horizontal Equity.
2to The taxation principle that says people with equal incomes should pay equal taxes is called...
Question 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 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.
which of the following statements is (are) correct? (x) If the rich pay more in taxes than the poor, the tax system must be progressive. (y) When the marginal tax rate exceeds the average tax rate, the tax is progressive and when the marginal tax rate equals the average tax rate for all levels of income, the tax is proportional. (z) A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on...
Describe the difference between the benefits principle of taxation vs the ability to pay. Describe the difference between vertical equity and horizontal equity as it pertains to taxes.
QUESTION 28 Which of these tax systems does not allow for vertical equity (different treatment of different people) O proportional tax O progressive tax O regressive tax Olump-sum tax QUESTION 29 When a tax is justified on the basis that taxpayers receive specific government services, the tax is considered a horizontally equitable burden is minimized satisfies the benefits principle is considered vertically equitable QUESTION 30 The argument that each person should pay taxes according to how well the individual can...
This is Urgent; I am checking myself understanding. Fill in answers using key concepts below. Each concept to be used once ability to pay principle adequacy benefits principle declining marginal utility earned income tax credits effective rate fee horizontally equitable progressive proportional public goods refundability regressive sacrifice doctrine of taxation tax burden tax equity tax expenditures tax incidence taxation vertically equitable 1. The ____________________________advises that the costs of government should be allocated in accordance with ability to pay. 2. The...
The ability-to-pay principle _______. A. proposes that all taxes that create a deadweight loss should be eliminated B. is the proposition that people should pay taxes equal to the benefits they receive from public goods and services C. supports zero income taxes and higher consumption taxes D. involves comparing people along two dimensions: horizontally and vertically
Text questions Which of the following statements about tax collection is correct? Choose one: a. Vertical equity means that everyone should pay the same amount of tax in ISK. b. A regressive tax means that those with the highest incomes pay proportionally the lowest tax. c. The Laffer curve shows that tax revenue will always continue to grow as the tax collection rate grows. d. Progressive tax means that those with the highest income pay proportionally the lowest tax. e....
Question Completion Status QUESTION 25 Which of these is most influential on your decision to work extra hours at your job o the averge tax rate the total tax bill the marginal tax rate e the lump sum tax rate QUESTION 26 As tax laws become more complex compliance costs are likely to decrease e the government will collect more tax revenue o tax evasion and avoidance will decrease e the administrative burden of taxes will increase QUESTION 27 If...
TULE TUL. MULTI 21 NUV-2019 Fall Torm U... Question Completion Status: QUESTION 26 As tax laws become more complex compliance costs are likely to decrease the government will collect more tax revenue tax evasion and avoidance will decrease the administrative burden of taxes will increase QUESTION 27 If the government imposes a $3000 tax on everyone, the tax would be: an income tax a consumption tax alump-sum tax a marginal tax QUESTION 28 Which of these tax systems does not...
Question 6 (5 points) Tax laws affect Question 6 options: A) economic efficiency but not equity. B) consumption and production, not efficiency and equity. C) equity but not economic efficiency. D) both efficiency and equity. Question 7 (5 points) Suppose the government imposes an 8 percent sales tax on clothing items and the tax is levied on sellers. Who pays for the tax in this situation? (Assume that the demand curve is downward-sloping and that the supply curve is upward-sloping.)...