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:

Middle-aged

A life stage typically ranging from about 45 to 65 years of age, often marked by both physical and psychological changes.

Older Persons

Individuals who have reached an advanced stage of life, often defined as ages 65 and above, with specific health, social, and economic considerations.

Physical Well-being

A state of health, fitness, and overall physical condition that contributes to a person's quality of life and ability to perform daily activities.

Social Isolationism

The state of being detached or separated from societal connections or interactions, often leading to loneliness or depression.