Horizontal Equity in Taxation Refers to the Idea That People

question 545

Multiple Choice

Horizontal equity in taxation refers to the idea that people

• A)in unequal conditions should be treated differently.
• B)in equal conditions should pay equal taxes.
• C)should be taxed according to their ability to pay.
• D)should receive government benefits according to how much they have been taxed.

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Definitions:

Conforming Goods

Products that meet the specifications and terms outlined in a contract of sale, matching the buyer's expectations.

Buyer's Disposition

The buyer's intention or decision regarding the management, use, or sale of purchased assets.

Sale on Approval

A conditional sales agreement that allows the buyer to return the purchased goods if they don't meet specified requirements.

Option to Return

A contractual provision allowing a party to return a product or relinquish a service for reasons specified in the agreement.