The principle of horizontal equity is satisfied when _____.
A)individuals receiving the same benefits end up paying the same in taxes
B)the public interest is being met
C)all individuals pay the same tax
D)individuals with an equal ability to pay end up paying the same in taxes

Question

Quizplus · Accepted Answer

Horizontal equity refers to the notion that individuals with the same ability to pay should be taxed equally. Therefore, option D is the correct choice. Option A refers to the principle of vertical equity, where those with higher incomes pay more in taxes, whereas option C is the opposite of horizontal equity as it advocates for a flat tax rate for all individuals regardless of their ability to pay. Option B is not related to horizontal equity.

The Principle of Horizontal Equity Is Satisfied When _____