How can a proportional tax achieve vertical equity?
Vertical equity is the idea that taxpayers with a greater ability to pay taxes should contribute a larger amount, not necessarily a larger percent. If all taxpayers pay 20 percent of their incomes, someone who earns $50,000 pays twice the amount of taxes as someone who earns $25,000 . Thus, a proportional tax achieves vertical equity.
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Use the following table to answer the next question.Money SupplyInterest RateGross Investment$200 billion0.2%$1 trillion$250 billion0.2%$1 trillion$300 billion0.2%$1 trillionWhich limitation for monetary policy is illustrated by the table?
A. crowding out B. pessimistic business expectations C. policy lags D. the liquidity trap
If good 1 is essential for one person but not for the other, the first person will end up with all of good 1 in a competitive equilibrium within the Edgeworth Box.
Answer the following statement true (T) or false (F)
Taxing in labor markets creates more excess burden than taxing in commodity markets.
A. True B. False C. Uncertain
When compared to Canada or Japan, the U.S. is unusual in that it has:
A. fewer banks than Japan but more than Canada. B. more banks than either Japan or Canada. C. far fewer banks than either of those countries. D. more banks than Japan but fewer than Canada.