The Principle of Horizontal Equity Is Violated If Two People

question 129

True/False

The principle of horizontal equity is violated if two people who earn the same amount of income actually pay a different amount in taxes.

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Definitions:

Emissions

The release or discharge of substances (like gases or pollutants) into the environment, often from industrial or vehicular sources.

Harm

Refers to damage or injury that negatively affects someone or something in a physical, psychological, or financial manner.

Marginal External Cost

The cost of producing one additional unit of a good or service that is borne by people other than the producer, often not reflected in the product's market price.

Socially Optimal

A state or outcome in which resource allocation maximizes social welfare, considering all costs and benefits to society.