Vertical Equity States That Taxpayers with a Greater Ability to Pay

Multiple Choice

Vertical equity states that taxpayers with a greater ability to pay taxes should

A) contribute a decreasing proportion of each increment in income to taxes.
B) contribute a larger amount than those with a lesser ability to pay.
C) be less subject to administrative burdens of a tax.
D) be less subject to tax distortions that lead to deadweight losses.