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.

---

Definitions:

Anorexia Nervosa

A serious eating disorder characterized by significantly restricted food intake and an intense fear of gaining weight.

Menstrual Cycles

The recurring cycle of physiological changes in the female reproductive system that includes the menstrual period, usually lasting about 28 days.

Bone Density

The amount of bone mineral in bone tissue, indicating strength and resistance to fracture.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, which negatively affect a person's health or well-being.