Horizontal equity:
I.means that those taxpayers who have the greatest ability to pay the tax should pay the greatest proportion of the tax.II.means that two similarly situated taxpayers are taxed the same.III.exists when Michael and Sam each earn $12,000 a year and pay $1,200 in tax.IV.exists when Avis, a single individual with 4 dependent children, and Art, a single individual with no dependents, both pay $2,400 income tax on equal $26,000 annual salaries.
A. Statements III and IV are correct.
B. Statements II and III are correct.
C. Statements I and III are correct.
D. Only statement IV is correct.
E. Statements I, II, III, and IV are correct.
Answer: B
You might also like to view...
Aaron operates a lemonade stand in New York City’s Central Park. His business is seasonal, but within those seasons several other factors influence the demand for lemonade. Aaron is most likely to use _____ to help him predict demand on a daily basis.
A. associative forecasting B. linear regression C. historical sales data D. the weather report
What are the two basic forms of variable life insurance?
What will be an ideal response?
Contrast the two types of sexual harassment
Suits under state law alleging bad-faith handling of a disability benefits claim are not preempted by Section 301 of the National Labor Relations Act
Indicate whether the statement is true or false