On What Basis Is a Tax on Expensive Speed Boats

Multiple Choice

On what basis is a tax on expensive speed boats that are purchased only by the wealthy NOT likely to satisfy the condition of vertical equity

A) Wealthy buyers are most likely to be subject to the implications of the flypaper theory of tax incidence.
B) Horizontal equity is most associated with a tax on luxury items.
C) Buyers can easily substitute other luxuries for expensive speedboats.
D) It is very unlikely that the burden of the tax will fall on workers who make the expensive speed boats.