Question

What does the equity of a tax mean? A The tax is simple to collect B The tax is fairly assessed C The tax is paid equally by everyone D The tax is paid only by those who will use the service it provides

Answer 1

The answer is B, it is fairly assessed to give people with different social backgrounds similar chances.

Answer 2

Answer:

The correct answer is B. The equity of a tax means that it is fairly assessed.

Explanation:

Tax equity is the informative principle of the tax system that seeks the best distribution of the tax burden among all the people who have to pay the taxes.

Tax equity can be horizontal or vertical:

-Horizontal equity implies treating people who are in similar circumstances equally.

-The vertical equity that is the unequal treatment of people who are in different situations, which can be achieved through a progressive tax.