What is one of the most difficult issues associated with trying to structure a tax policy to satisfy horizontal equity
A)determining whether or not a taxpayer falls within the highest income quintile
B)determining the level of transfer payments made to low-income groups
C)determining the source of income for taxpayers
D)determining what differences are relevant to a family's ability to pay

Question

Quizplus · Accepted Answer

Determining what differences are relevant to a family's ability to pay is one of the most difficult issues associated with trying to structure a tax policy to satisfy horizontal equity. This is because what may appear to be a relevant difference to one person or group may not be considered relevant to another, leading to disagreements and challenges in implementing a tax policy that is perceived as fair and equitable.

What Is One of the Most Difficult Issues Associated with Trying