Horizontal Equity

Research Report

Horizontal Equity

From The Encyclopedia of Taxation and Tax Policy
October 1, 1999


Horizontal equity holds that taxpayers who have the same income should pay the same amount in taxes. The principle of horizontal equity is a basic yardstick used to gauge whether tax burdens are fairly distributed. This entry explores how horizontal equity interacts with consumption versus income taxation and implicit taxes. It also mentions cases in which horizontal equity does not apply.

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