Horizontal and vertical equity in taxation

Horizontal And Vertical Equity In Taxation. The term horizontal equity in this literature refers to the. Taxe rates can be progressive regressive or proportional. Those decisions of the Germany Constitutional Court require parity horizontal equity – among taxpayers and suggest but do not require progressivity in taxation vertical equity. It is important to emphasize that horizontal equity is concerned with individuals who are similarly situated not with those who are identically situated Tautologically any conceivable tax arrangement will treat identically situated taxpayers equally.

Vertical equity requires proportional or progressive taxes. Scholars ranging from the. Vertical equity and economic efficiency. Both horizontal and vertical equity are affected by the way income is taxed. Vertical equity is based on the principle of ability to pay through progressive tax rates or. Germany and the United States Contrasted by Henry Ordower Professor of Law and Co-Director Center for International and Comparative Law Saint Louis University School of Law AB.

Some major conclusions from the literature are.

Horizontal and Vertical Inequity in Real Property Taxation G. Horizontal equity is the principle that taxpayers with equal income should pay equal tax. This paper examines the extant literature on horizontal and vertical inequity in the taxation of real property. It is important to emphasize that horizontal equity is concerned with individuals who are similarly situated not with those who are identically situated Tautologically any conceivable tax arrangement will treat identically situated taxpayers equally. Vertical equity Vertical equity is concerned with redistributing income within society. It implies that people with higher incomes should pay more tax.