Table 12-17
The following table shows the marginal tax rates for unmarried individuals for two years.
-Refer to Table 12-17. Suppose one goal of the tax system was to achieve vertical equity. While people may disagree about what is "equitable," based on the marginal tax rates given for the two years, which of the following statements is true?
A)Vertical equity is possible in both years.
B)Vertical equity is possible in 2009 but not in 2010.
C)Vertical equity is not possible in 2009 but is possible in 2010.
D)Vertical equity is not possible in either year.

Question

Table 12-17
The following table shows the marginal tax rates for unmarried individuals for two years. 
-Refer to Table 12-17. Suppose one goal of the tax system was to achieve vertical equity. While people may disagree about what is "equitable," based on the marginal tax rates given for the two years, which of the following statements is true?
A)Vertical equity is possible in both years. 
B)Vertical equity is possible in 2009 but not in 2010. 
C)Vertical equity is not possible in 2009 but is possible in 2010. 
D)Vertical equity is not possible in either year.

Quizplus · Accepted Answer

Vertical equity is achieved when taxpayers with a greater ability to pay taxes contribute a larger amount. If the marginal tax rates increase with income in both years, vertical equity is possible.

Table 12-17 The Following Table Shows the Marginal Tax Rates for Unmarried