Vertical Equity Means That

question 18

Multiple Choice

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.

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Definitions:

Insurance Policyholder

An individual or entity who owns an insurance policy and is entitled to coverage and benefits as specified in the policy agreement.

CHAMPVA

A health care benefits program managed by the Department of Veterans Affairs for the dependents of veterans who are permanently and totally disabled due to service-related conditions.

Service-Connected Disabilities

Disabilities that are recognized as being directly related to military service.

Coordination of Benefits (COB)

A process whereby insurance companies share costs and determine payment responsibilities when a person is covered under multiple insurance plans.