Which tax rate is most relevant when evaluating the vertical equity of a taxation system?

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Tax rate on the next dollar earnedOverall tax paid as a percentage of total incomeTax rate applied equally to individuals with similar incomesTax rate that remains constant regardless of income level

Explanation

Vertical equity concerns the fairness of tax burdens across different income levels, which is best assessed using the average tax rate—the total tax paid divided by total income—rather than the marginal tax rate or other types.