The Horizontal-Equity Principle of Taxation Is Not Easy to Use

question 15

Multiple Choice

The horizontal-equity principle of taxation is not easy to use in practice because

• A)some people engage in rent seeking to reduce their taxes below the level other people pay.
• B)people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
• C)different people receive different levels of government benefits even if their incomes are the same.
• D)it is difficult to determine whether people are in the same economic situation.

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Definitions:

Deculturation

The process through which an individual or group loses their native cultural identity, often through prolonged contact with another culture.

Strategic Benefits

Advantages gained from implementing long-term plans that align with an organization's overall goals and objectives.

Resource Allocation

The process of assigning and managing assets, funding, and other resources among various projects or business units to maximize efficiency and achieve strategic objectives.

Merger Integration

The process of combining and restructuring two or more companies into a single entity, focusing on aligning organizational culture, systems, and operations.