Suppose Seth and Nathan are college students with the same annual income,yet Seth pays half of the annual income tax that Nathan does.Which statement best summarizes a possible issue with this outcome from a principle of tax policy perspective?
A)It violates the principle of vertical equity.
B)It violates the principle of diagonal equity.
C)It violates the principle of horizontal equity.
D)It violates the benefit principle.

Question

Quizplus · Accepted Answer

Horizontal equity is the principle that individuals with similar abilities to pay should contribute an equal amount in taxes. In this scenario, Seth and Nathan have the same annual income but are not contributing an equal amount in taxes, indicating a violation of the principle of horizontal equity.

Suppose Seth and Nathan Are College Students with the Same