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Describe the difference between validity and reliability in relation to assessment techniques.
Vertical Equity
A principle of taxation that suggests taxpayers with a higher ability to pay should contribute more in taxes than those with a lesser ability to pay.
Horizontal Equity
The principle that individuals with equal ability to pay should face equal tax burdens.
Marginal Tax Rates
The tax rate that applies to the next dollar of taxable income.
Vertical Equity
A principle in taxation that suggests taxpayers with a greater ability to pay should contribute more in taxes.
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