Consider the Following Tax Rate Structures

Essay

Consider the following tax rate structures. Is it horizontally equitable? Why or why not? Is it vertically equitable? Why or why not? $$\begin{array} { | r | r | r | r | } \hline \text { Taxpayer } & \text { Salary } & \text { Mun-Bond Interest } & \text { Total Takr } \\\hline \text { Mort } & 20,000 & 5,000 & 4,000 \\\text { Lizzy } & 80,000 & 30,000 & ? ? ? \\\hline\end{array}$$