Table 12-15
-Refer to Table 12-15. In this tax system which of the following is possible?
A)vertical and horizontal equity
B)vertical but not horizontal equity
C)horizontal but not vertical equity
D)neither horizontal nor vertical equity

Question

Table 12-15 
-Refer to Table 12-15. In this tax system which of the following is possible?
A)vertical and horizontal equity 
B)vertical but not horizontal equity 
C)horizontal but not vertical equity 
D)neither horizontal nor vertical equity

Quizplus · Accepted Answer

Vertical equity is achieved when taxpayers with different abilities to pay taxes contribute different amounts, while horizontal equity is achieved when taxpayers with similar abilities to pay contribute similar amounts. In a well-designed tax system, both can be possible.

Table 12-15 -Refer to Table 12-15. in This Tax System Which of System