The Horizontal-Equity Principle of Taxation Is Not Easy to Use

question 15

Multiple Choice

The horizontal-equity principle of taxation is not easy to use in practice because

• A)some people engage in rent seeking to reduce their taxes below the level other people pay.
• B)people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
• C)different people receive different levels of government benefits even if their incomes are the same.
• D)it is difficult to determine whether people are in the same economic situation.

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Definitions:

Reproduction

The biological process by which new organisms are generated, ensuring the continuation of a species.

Differential Reinforcement

In acquiring gender roles and identities, the process by which girls and boys are rewarded for engaging in ways that are considered gender appropriate in their culture.

Personality Development

The formation and growth of the enduring patterns of thought, feeling, and behavior that distinguish an individual.

Cognitive Structures

The mental frameworks and concepts that individuals use to organize and interpret information.