Horizontal Equity

Tax System

The principle that taxpayers in similar economic circumstances should bear similar tax burdens. Tax preferences that benefit some taxpayers but not others with similar incomes violate horizontal equity.

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Unit 19: tax code policy

Tax System

Related Terms

Vertical Equity

The principle that taxpayers with greater ability to pay sho...

Tax expenditure

Revenue the government forgoes through tax breaks, functioni...

Tax preference

A provision in the tax code that provides favorable treatmen...