Question

If we pay same amount of taxes regardless of income, does it violate principle of horizontal...

If we pay same amount of taxes regardless of income, does it violate principle of horizontal equity or vertical equity?

Homework Answers

Answer #1

If people pay same amount of tax, they are violating the principle of vertical equity because of the fact that article equity states that Income Tax increases with increase in the incomes but here it is stating that regardless of income people pay same taxes which is false. now you have to understand the fact that horizontal equity is not violated because same income people are not talked about with horizontal equity states that same income people should be same amount of taxes.

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