In the 1980s, President Ronald Reagan Argued That High Tax

Multiple Choice

In the 1980s, President Ronald Reagan argued that high tax rates distorted economic incentives to work and save. In the 1990s, President Bill Clinton argued that the rich were not paying their fair share of taxes. Which of the following statements best summarizes the economic theories behind the differing philosophies?

A) President Reagan was concerned about vertical equity, whereas President Clinton was concerned about horizontal equity.
B) President Reagan was concerned about average tax rates, whereas President Clinton was concerned about horizontal equity.
C) President Reagan was concerned about marginal tax rates, whereas President Clinton was concerned about vertical equity.
D) President Reagan and President Clinton were both concerned about horizontal equity.