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Economics 101: Horizontal Equity | SterlingTerrell.net

Economics 101: Horizontal Equity


What is defined as horizontal equity?

Horizontal Equity is one of the principles of taxing.

It says that people with similar income, assets, property, etc. should pay similar taxes.

Vertical Equity is another principle of taxing.

Horizontal Equity is sometimes difficult to achieve.

Take property tax for example, one can be very wealthy but pay much less tax, simply by owning a smaller home.