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Create an inefficiency or excess burden

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Two students have identical high school records and test scores. After college, one student becomes an accountant and the other a social worker. The social worker will likely pay less in income taxes than the accountant. Will this violate the principle of horizontal equity? Explain. (Hint: Your answer depends on the choice of the measure that is used in deciding whether people are the same or different for tax purposes.) Will this create an inefficiency or excess burden?

Reference no: EM131195083

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