The Assertion That People with the Same Ability to Pay

question 182

Multiple Choice

The assertion that people with the same ability to pay taxes should pay the same amount in taxes best represents the idea of

• A) horizontal equity.
• B) vertical equity.
• C) the benefits principle of tax fairness.
• D) fairness principle of taxation.
• E) benefits paid principle of taxation.

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Definitions:

Consolidation

The merging of assets, liabilities, and other financial items of two or more entities to form a single, combined financial statement.

Investment

Allocation of resources, usually money, in assets or projects expected to generate income or profit in the future.

Expenditure

The action of spending funds or expenses incurred by an entity in the course of its operations.

Capital Acquisition

The process of obtaining funds or assets to invest in long-term physical assets or business expansion.