36.7k views
4 votes
True or false: According to revenue neutrality, Taxpayers who earn the same amount of income pay the same amount of tax.

User Woodstock
by
8.2k points

1 Answer

1 vote

Final answer:

According to revenue neutrality, taxpayers who earn the same amount of income do not necessarily pay the same amount of tax.

Step-by-step explanation:

The statement 'According to revenue neutrality, Taxpayers who earn the same amount of income pay the same amount of tax' is false. Revenue neutrality means that a tax change should not change the overall revenue generated by the government. However, it does not require taxpayers with the same income to pay the same amount of tax. Taxes are typically progressive, meaning that higher-income individuals pay a higher percentage of their income in taxes compared to lower-income individuals. This is achieved through tax brackets, where higher incomes are taxed at higher rates.

User Xanatos
by
7.2k points