Question 9 4 points Which of the following means Vertical eq

Question 9 (4 points)

Which of the following means Vertical equity?

Taxpayers with the same amount of income pay the same amount of tax.

Taxpayers with larger amounts of income should pay more tax than taxpayers with lower amounts of income.

All taxpayers should pay the same tax.

None of the above.

Question 10 (4 points)

Which of the following is not a social objective of the tax law?

Prohibition of a deduction for illegal bribes, fines, and penalties

A deduction for charitable contributions

An exclusion for interest earned by large businesses

Creation of tax-favored pension plans

Solution

Vetical equity means Taxpayers with larger amounts of income should pay more tax than taxpayers with lower amounts of income.

hence option B is the correct answer

2)An exclusion for interest earned by large businesses