A Lump Sum Tax Can Never Have Horizontal Equity

question 134

True/False

A lump sum tax can never have horizontal equity.

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Definitions:

Explicit Fee

A clear and defined charge for a service or product that is not hidden or implicit.

Antipoverty Programs

Government or organizational initiatives designed to reduce or eliminate poverty by providing assistance to the needy through services or financial aid.

Public Good

A good or service provided at no cost to every person in a society, delivered by either state institutions or a nonprofit private individual or organization.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.