Income is a poor measure of relative position when attempting to determine horizontal equity.

Question

Quizplus · Accepted Answer

Income does not provide information about other factors that may affect a person's ability to contribute to society or their overall well-being, such as education level, occupation, location, and expenses. Therefore, it is not a reliable measure of relative position for determining horizontal equity, which asserts that individuals in similar situations should be taxed similarly. Other measures, such as wealth or consumption, may provide a better indication of an individual's ability to pay taxes.

Income Is a Poor Measure of Relative Position When Attempting