The Taxation Principle That Says People with Higher Incomes Should

question 139

Multiple Choice

The taxation principle that says people with higher incomes should pay more in taxes than those with lower incomes is called

• A)A flat tax system.
• B)A regressive tax system.
• C)Vertical equity.
• D)Horizontal equity.

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Definitions:

Delivery Costs

Expenses associated with the transport of goods from the seller to the purchaser.

Receiving

The process of accepting, inspecting, and recording inbound shipments of goods or materials into a warehouse or facility.

Inwards Inspection

The process of examining materials or products upon arrival at a facility to ensure they meet required standards and specifications.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.