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Horizontal Equity
(redirected from Equity (economics))

   Also found in: Wikipedia 0.07 sec.
Horizontal Equity
A theory that persons or corporations who earn the same or a similar amount of money should be taxed in the same or a similar way. For example, horizontal equity states that two individuals making $50,000 per year should be taxed the same amount, regardless of how they earned their income. Horizontal equity is the idea behind the progressive tax system in place in many countries, though few countries implement it entirely.


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