Describe the Ability-To-Pay Principle of Taxation

question 12

Essay

Describe the ability-to-pay principle of taxation. Use an example to demonstrate the difference between horizontal and vertical equity.

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Definitions:

ICD Coding Rules

The standards and guidelines for using the International Classification of Diseases system to categorize and code patient diagnoses.

Reason Rule

Refers to the purpose or reason for doing a test or procedure, an insurance company criteria for reimbursement; the reason for the patient visit (encounter) is coded first. This is the primary diagnosis; any other issues the patient presents with (comorbidities) are coded next, in order of importance. This includes chronic conditions that must be considered or will be affected by the treatment for the primary diagnosis.

Indexing Rule

Guidelines or principles used in organizing, categorizing, and locating information or data systematically.

Evaluation And Management Service

Medical services provided by healthcare providers to assess and manage a patient's health status typically involving history taking, examination, and medical decision making.