Answer
The states that do not exclude and food from taxation are more efficient in bringing in tax revenue.
However, there are states that do exclude necessities from taxation. These states are less efficient in bringing in tax revenue.
Work Step by Step
In areas with taxpayers whose incomes are higher, horizontal equity states that those taxpayers should pay similar amounts of tax. In areas with taxpayers whose incomes vary greatly, vertical equity states that the taxpayers who have a greater ability to pay should pay more.
