Home » Eng Finance » H » Horizontal equity

Horizontal equity

The view that people in similar circumstances should be treated equally. Applying this concept to the tax system, for example, horizontal equity requires that two similar workers are taxed at the same rate. Horizontal equity is distinguished from vertical equity, which is concerned with questions such as how far large differences in income should be moderated by redistributive taxation.

Reference: Oxford Press Dictonary of Economics, 5th edt.