Vertical Equity States That Taxpayers with a Greater Ability to Pay

question 100

True/False

Vertical equity states that taxpayers with a greater ability to pay taxes should contribute a decreasing proportion of each increment in income to taxes.

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Definitions:

Liability

The state of being responsible for something, especially by law, which can include financial or legal obligations.

General Partner

A full partner with unlimited liability for the debts of the partnership.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who invest but do not participate in management.

Partnership Interest

The share or portion of a partnership owned by one of the partners, including rights to its profits.