Table 12-16 The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes. Household A B C D Ability to Pay low and same as B low and same as A high and same as D high and same as C Refer to Table 12-16. In this economy Tax C exhibits horizontal and vertical equity. Tax A 100 100 100 100 horizontal equity but not vertical equity. vertical equity but not horizontal equity. neither horizontal nor vertical equity. Tax B 30 30 40 40 Tax C 40 50 60 70

Principles of Economics (MindTap Course List)
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Chapter12: The Design Of The Tax System
Section: Chapter Questions
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Table 12-16
The table below provides information on the 4 households that make up a small economy and how
much they would pay in taxes under 3 types of taxes.
Household
A
B
C
D
Ability to Pay
low and same as B
low and same as A
high and same as D
high and same as C
oooo
Refer to Table 12-16. In this economy Tax C exhibits
horizontal and vertical equity.
horizontal equity but not vertical equity.
vertical equity but not horizontal equity.
Tax A
100
100
100
100
neither horizontal nor vertical equity.
Tax B
30
30
40
1
40
Tax C
40
50
60
70
Transcribed Image Text:Table 12-16 The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes. Household A B C D Ability to Pay low and same as B low and same as A high and same as D high and same as C oooo Refer to Table 12-16. In this economy Tax C exhibits horizontal and vertical equity. horizontal equity but not vertical equity. vertical equity but not horizontal equity. Tax A 100 100 100 100 neither horizontal nor vertical equity. Tax B 30 30 40 1 40 Tax C 40 50 60 70
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