Table 12-13
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes.
-Refer to Table 12-13. In this economy Tax B exhibits
A)horizontal and vertical equity.
B)horizontal equity but not vertical equity.
C)vertical equity but not horizontal equity.
D)neither horizontal nor vertical equity.

Question

Table 12-13
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes. 
-Refer to Table 12-13. In this economy Tax B exhibits
A)horizontal and vertical equity. 
B)horizontal equity but not vertical equity. 
C)vertical equity but not horizontal equity. 
D)neither horizontal nor vertical equity.

Quizplus · Accepted Answer

Tax B exhibits horizontal equity because individuals with the same income pay the same amount of tax. It exhibits vertical equity because individuals with higher incomes pay a higher percentage of their income in taxes.

Table 12-13 The Table Below Provides Information on the 4 Households That