Vertical Equity Is the Idea That

question 178

Multiple Choice

Vertical equity is the idea that

• A) taxpayers with a greater ability to pay should bear a greater share of the taxes.
• B) people should pay taxes equal to the benefits they receive from public benefits.
• C) as income rises, taxes should be efficient, not equitable.
• D) the marriage tax is equitable.
• E) taxes must be fairest to people with the largest incomes.

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Definitions:

Donee Beneficiaries

Individuals or entities that receive benefits from a contract, though they are not one of the primary parties involved in the agreement.

Creditor Beneficiaries

Third parties that benefit from a contract between two other parties because one party promises to pay a debt owed to the beneficiary.

Incidental Beneficiaries

Individuals or entities that unexpectedly benefit from a contract, despite not being directly involved in its formulations.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially regarding debt repayment.