contestada

Suppose that a government decided to collect all of its revenue through a tax on tap water. Explain why this tax would or would not be fair.

Respuesta :

Collecting revenue through a tax on tap water would not be fair because it is not based on the ability to pay.

What is tax fairness?

Tax fairness can be described as a principle that states that a government's tax system should be equitable to all taxpayers.

Tax fairness advocates think that taxes should be based on the ability to pay of taxpayers.

The concept of ability to pay assumes that people with varying levels of wealth or income should pay varying levels of taxes.

Since collecting revenue through a tax on tap water is not based on the ability to pay, this tax would therefore not be fair.

Learn more about tax fairness here: https://brainly.com/question/1126162.

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