Table 12-6
The table below provides information on the four households that make up a small economy and how much they would pay in taxes under three types of taxes.

-Refer to Table 12-6. 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 12-6
The table below provides information on the four households that make up a small economy and how much they would pay in taxes under three types of taxes.
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-Refer to Table 12-6. 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 people with the same income pay the same amount of tax. It exhibits vertical equity because people with higher incomes pay a higher percentage of their income in taxes.

Table 12-6 The Table Below Provides Information on the Four Households That