Question

What principle of equity is illustrated by this diagram?

a The people who receive the benefits of the tax should be the ones paying the
tax.

b The rate at which taxes are paid should be the same for all income levels.

c The share of income paid in taxes should vary based on ability to pay.

d The government should reduce tax rates when it is receiving ample revenue.

Answer 1

A national tax cannot be levied at different rates in different states. What principle of equity is illustrated by this diagram? The share of income paid in taxes should vary based on ability to pay. You just studied 25 terms!