Given the following tax structure,
Taxpayer Salary Total Tax
Mae $ 10,000 $ 600
Pedro $ 20,000 $ 1,500
Venita $ 10,000 ???
What tax would need to be assessed on Venita to make the tax horizontally equitable?

Respuesta :

Answer:

$ 600

Explanation:

Horizontal equity:  

It's a principle for taxes who state that given two different people who earn the same amount, they should be subject to the same tax rate

It may occur that through discounts, deductions and other tax benefits a person with the same taxable income as another, pays less income tax.

For example if it is married, if it has kids, or another deduction.

In general, it is advisable to have horizontal equity as is considered neutral and more fair, as people on the same income level, have the same tax rate.