Multiple Choice
Two families who live in Plains, GA have identical incomes. The Smiths deduct $5,000 from their taxable income for mortgage interest paid during the year. The Jones family lives in an apartment and is not eligible for a mortgage-interest deduction. This situation exemplifies
A) an application of the benefits principle of taxation.
B) a violation of horizontal equity.
C) a violation of vertical equity.
D) an application of egalitarian tax rules.
Correct Answer:
Verified
Correct Answer:
Verified
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