Question 1
The progressive income tax is a tax based on the
◦ benefits-received principle.
◦ tax equity principle.
◦ efficiency tax principle.
◦ ability-to-pay principle.
Question 2
Vertical equity holds that
◦ those with equal ability to pay should bear equal tax burdens.
◦ those who benefit the most from governmental services should bear the higher tax burden.
◦ those with greater ability to pay should pay more.
◦ those with equal ability to pay should bear unequal tax burdens.