​Which of the Following Is an Example of Horizontal Equity

question 546

Multiple Choice

​Which of the following is an example of horizontal equity?

• A)​A wealthy individual should pay more taxes than a lower-income individual ​
• B)A wealthy individual should have a greater average tax rate than a middle-income individual ​
• C)Two persons with identical incomes should pay the same taxes ​
• D)A local government decides to impose taxes based on the benefits principle ​

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Definitions:

Mortgage Transaction

A financial agreement where a borrower receives funds secured by the value of real property, which is to be repaid with interest over time.

Mortgagee

The lender or financial institution that provides the loan in a mortgage agreement.

Mortgagor

The borrower in a mortgage loan agreement, who pledges real property as security for the repayment of the mortgage debt.

Tenancy In Common

Ownership of land by two or more people with equal, undivided interests in it.