If Social Security were considered part of the general budget then, The vertical
ID: 1191309 • Letter: I
Question
If Social Security were considered part of the general budget then,
The vertical equity principle would be violated
Marginal tax rates would be regressive.
The horizontal equity principle would be violated.
Both a and b.
Both b and c.
If Social Security were considered part of the general budget then,
The vertical equity principle would be violated
Marginal tax rates would be regressive.
The horizontal equity principle would be violated.
Both a and b.
Both b and c.
If Social Security were considered part of the general budget then,
The vertical equity principle would be violated
Marginal tax rates would be regressive.
The horizontal equity principle would be violated.
Both a and b.
Both b and c.
If Social Security were considered part of the general budget then,
The vertical equity principle would be violated
Marginal tax rates would be regressive.
The horizontal equity principle would be violated.
Both a and b.
Both b and c.
Explanation / Answer
Answer -Both A and C
We know that social security income we means that all the other income we earn from other sources. This is some time refered as Tax exemption or reduction etc..
Vertical equity
Vertical equity of tax we means that treating different tax payers diffrently. It is depends upon income of the people.
Horizontal equity
In the case of horizontal equity we means that same amount of tax to the different income earners.