Table 12-16
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 12-16.In this economy Tax C 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 12-16
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 12-16.In this economy Tax C 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 C exhibits vertical equity because households with higher incomes are paying a proportionally larger share of their income in taxes. However, it does not exhibit horizontal equity because households with the same income are not paying the same amount in taxes.

Table 12-16 The Table Below Provides Information on the 4 Households That