Question

When evaluating a tax system, _____________ considers how the tax burden should be distributed across taxpayers.

A) Efficiency
B) Adequacy
C) Equity
D) Neutrality

Answer 1

Equity is the concern in a tax system that addresses how the tax burden should be distributed among taxpayers to ensure fairness.

Step-by-step explanation:

When evaluating a tax system, Equity considers how the tax burden should be distributed across taxpayers. Equity ensures that a tax system is fair by possibly redistributing wealth among citizens, taxing wealthier people at a higher percentage, and providing social welfare programs to lower income families. It is closely tied to principles of distributive justice, which look to achieve fairness with respect to distributions of wealth, goods, and services within a society.