Question

what is fair and equitable tax rate?​

Answer 1

Answer:

Vertical Equity and Fairness - Vertical equity and fairness means that the tax burden should be based on the taxpayer's ability to pay. Clearly individuals with subsistence levels of income should not be subject to all types of taxes because they need all their resources to provide for themselves and their families.

Answer 2

A Fair and equitable tax rate is a tax rate that is progressive in nature.

Explanation:

• A fair and equitable tax rate is one that is progressive in nature. This means that the tax rate should be imposed in such a manner that the tax burden increases with the increasing income.
• It is fair when the people with more income and wealth have to pay equal taxes as per their economic standing.
• A tax rate would be unfair if the burden of increasing taxes is borne by the weaker sections of society.