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Author Question: Individuals are allowed to deduct a percentage of their expenditures for health care from their ... (Read 35 times)

imowrer

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Question 1

________ holds that those with equal ability to pay should bear equal tax burdens.


◦ The benefits-received principle
◦ Horizontal equity
◦ Vertical equity
◦ Progressive tax theory

Question 2

Individuals are allowed to deduct a percentage of their expenditures for health care from their taxable income if these expenditures are above a certain amount. This reduces the amount that must be paid in taxes. Allowing for these deductions would ________ vertical and horizontal equity of the federal income tax.


◦ not change
◦ worsen
◦ improve
◦ Any of these answers could be correct.


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Marked as best answer by imowrer on Apr 19, 2019

sierramartinez

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