Vertical equity means that
A)taxpayers with the same amount of income pay the same amount of tax.
B)taxpayers with larger amounts of income should pay more tax than taxpayer's with lower amounts of income.
C)all taxpayers should pay the same tax.
D)none of the above.
Which of the following is not an objective of the federal income tax law?
A)Stimulate private investment.
C)Encourage research and development activities.
D)Prevent taxpayers from paying a higher percentage of their income in personal income taxes due to inflation.
Which of the following is not a social objective of the tax law?
A)prohibition of a deduction for illegal bribes,fines and penalties
B)a deduction for charitable contributions
C)an exclusion for interest earned by large businesses
D)creation of tax-favored pension plans
Which of the following is not a taxpaying entity?
D)All of the above are taxpayers.