Asked Oct 31, 2019
6.8) Indicate whether each of the following statements is true, false, or
uncertain. Explain why
Tom’s workplace provides free access to a fitness room; Jerry’s does not. Horizontal equity
requires that Tom be taxed on the value of having access to the fitness room

Expert Answer

Step 1


The horizontal equity theory of the taxation states that the people with similar income levels and assets ownership in the economy should pay the same level of tax to the government. This tax system is based on the same level of income and assets across the people, which give it the name of horizontal equity.

Step 2

Thus, according to the idea of horizontal equity, the individuals with same level of income or assets are needed to pay the same tax. But based on the Haig-Simons income measure whic...

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