Question

The horizontal-equity principle of taxation is not easy to use in practice because
A) some people engage in rent seeking to reduce their taxes below the level other people pay.
B) people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
C) different people receive different levels of government benefits even if their incomes are the same.
D) it is difficult to determine whether people are in the same economic situation.

Answer

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