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Income Tax Liability
The amount of tax that an individual or entity is legally obligated to pay to a tax authority, based on their income.
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.
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