Which one of the following situations demonstrates the “equity” characteristic of a good tax?

Policy-makers introduce new forms to improve readability of paperwork for consumers.

Policy-makers reform the tax system to allow more taxpayers to prepare their own forms.

Policy-makers lower the tax rate for individuals earning income below the poverty threshold.

Policy-makers revamp tax collection procedures to save costs.

Respuesta :

The situation that would most likely demonstrate the “equity” characteristic of a good tax would be "Policy-makers lower the tax rate for individuals earning income below the poverty threshold." By definition, equity is the difference between assets and liabilities that is an important aspect of taxation.

Answer:

Policy-makers lower the tax rate for individuals earning income below the poverty threshold.

Explanation: