To Determine Horizontal Equity,two Taxpayers with

question 41

Multiple Choice

To determine horizontal equity,two taxpayers with

• A)The same taxable incomes should be compared for their effective tax rates.
• B)The same gross incomes should be compared for their effective tax rates.
• C)Different gross incomes should be compared for their effective tax rates.
• D)Different taxable incomes should be compared for their nominal tax rates.

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Definitions:

Shirts

Garments for the upper body, typically with sleeves and a collar, made from various fabrics and used as clothing.

Wine

An alcoholic beverage made from fermented grapes or other fruits.

Commodity

represents a basic good used in commerce that is interchangeable with other goods of the same type.

Produce

Refers to agricultural products and goods that have been grown or farmed.