The Operation supports several reform measures implemented by the Government, and focuses specifically on the development of the Unified Tax Code through expanding the tax base, rationalizing rates, improving transparency of tax policy and closing major loopholes in the current tax legislation The new Tax Code will address issues related to complex, unsystematic and occasionally contradictory regulations reducing voluntary tax compliance, distorting the horizontal equity
of taxation and creating uncertainty for businesses and households.
Their efforts, however, were mostly focused on fighting tax fraud and building horizontal equity
(making sure individuals and businesses with similar levels of income pay similar levels of tax).
During the 1980s and 1990s, tax reforms in Latin America were primarily focused on economic efficiency, horizontal equity
and revenue adequacy.
This egalitarian principle, known as horizontal equity
, can be summarized in the following rule: equal access for equal need.
important than violating notions of horizontal equity
demands that similarly situated taxpayers pay similar amounts of tax.
equity and horizontal equity
, the intelligible principles relating to
The Commentary concludes that income splitting would fail to achieve its ostensible horizontal equity
The papers explore the debate concerning whether the property tax is a benefit tax or a tax on capital and the implications for efficiency and equity arguments, the effects of capitalization of property taxes and local government expenditures on house values, the horizontal equity
or fairness dimension of the property tax, and the relative revenue productivity and lack of volatility of the property tax.
Equity is generally measured against two criteria: vertical equity requires that a person who is capable of paying more tax should pay more tax; while horizontal equity
requires that a person who is in same circumstances as another person should pay the same amount of tax as that other person.
Here the issues of vertical and horizontal equity
dominate, but there are multiple discussions of generational equity.
In addition the rules still fail to provide complete horizontal equity
for taxpayers regarding litigation proceeds.