The table below provides information on the four households that make up a small economy and how much they would pay in taxes under
The table below provides information on the four households that make up a small economy and how much they would pay in taxes under three types of taxes. Household A B C Ability to Pay low and same as B low and same as A high and same as D high and same as C Amount of Taxes Paid Under... Tax B Tax C Tax A (Dollars) 100 100 100 100 (Dollars) In this economy Tax A exhibits a. horizontal and vertical equity. b. horizontal equity but not vertical equity. C. vertical equity but not horizontal equity. d. neither horizontal nor vertical equity. 30 30 40 40 (Dollars) 40 50 60 70 In this economy Tax B exhibits a. neither horizontal nor vertical equity. b. horizontal equity but not vertical equity. C. horizontal and vertical equity. d. vertical equity but not horizontal equity.
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