The principle of vertical equity is satisfied when _____.
A)individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay
B)individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits
C)taxes increase as family size increases
D)taxes on higher income individuals are more efficient than the taxes on lower income individuals

Question

Quizplus · Accepted Answer

The principle of vertical equity states that individuals with a greater ability to pay should contribute a higher proportion of their income in taxes compared to those with a lower ability to pay. Therefore, choice A correctly represents the principle of vertical equity. Choice B refers to the principle of benefits received, not vertical equity. Choice C refers to horizontal equity, which is when individuals with similar ability to pay contribute the same proportion of their income in taxes. Choice D is not a characteristic of vertical equity.

The Principle of Vertical Equity Is Satisfied When _____