Which statement is FALSE? Vertical equity exists when taxpayers in different economic situatinos (eg, low vs high income) are taxed differently, but fairly in relation to each taxpayer's ability to pay the tax. A tax expenditure is a revenue loss to the government attributable to some provision of the tax law that allows a special exclusion, exemption, or deduction from gross income. Regressive taxes increase the vertical equity of the tax system. Question 4 3 pts Which statement is false? Over a broad range of wage income, Social Security taxes (ie, FICA taxes) are regressive. Progressive income tax rates increase the horizontal equity of the income tax. A regressive tax is characterized by a tax rate that decreases as the tax base increases