What does horizontal equity state that taxpayers with similar incomes should pay
A)taxes based only on their income
B)exactly the same amount of taxes, regardless of circumstances
C)similar amounts of tax
D)taxes based on the benefits received from government services

Question

Quizplus · Accepted Answer

Horizontal equity states that taxpayers with similar economic circumstances should pay similar amounts of tax, regardless of other circumstances. This means that two individuals with the same income should pay the same amount of taxes, even if one is married and the other is single or if one has children and the other does not. However, horizontal equity does not mean that everyone should pay exactly the same amount of taxes, as some individuals may have different deductions, exemptions, or tax credits that reduce their tax liabilities.

What Does Horizontal Equity State That Taxpayers with Similar Incomes