If Taxes Are Collected on the Basis of Ability-To-Pay and There

question 95

Multiple Choice

If taxes are collected on the basis of ability-to-pay and there are two taxpayers with the same income who also are identical in all other respects,which of the following is correct?

• A) Vertical equity is impossible between these two taxpayers.
• B) Vertical equity exists.
• C) Horizontal equity exists.
• D) The tax must be proportional.
• E) The fair-incidence principle is potentially being violated.

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