The ability-to-pay principle is most closely tied to the concept of
A. horizontal equity in taxation.
B. fiscal federalism.
C. vertical equity in taxation.
D. the benefits principle of tax equity.
Answer: C
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Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because
A) exports were becoming a less important part of the economy, and it was hard to measure decreases in output from exports. B) of the high inflation levels of the 1970s. C) new environmental laws had passed and forced firms to spend to reduce pollution, and this spending did not raise output. D) increased spending on health and safety raised worker productivity.
"Only in a progressive tax system does the amount of taxes increase as income increases." Do you agree or disagree? Explain
What will be an ideal response?