The primary approach of vertical equity
is to evaluate transport policy or infrastructure projects according to how they affect accessibility between disadvantaged people/households or regions.
. (68) Such remedial measures are most often implemented
demands a clear, transparent, and uniform definition of rich, which the current hodgepodge of wealth adjustments to tax rates does not achieve.
In terms of vertical equity
, if the poor had more opportunity of evading taxes than the rich then the egalitarian policy makers might be happy on evasion up to a certain level.
From an efficiency perspective, there is nothing fundamentally different between filers with and without tax liability and from a distributional perspective this reduces both horizontal and vertical equity
the concept is best expressed through "vertical equity
Public policies of European Union focused on inequality and poverty alleviation are influenced by the goal to achieve both horizontal and vertical equity
. Horizontal equity means that people having the same financial conditions are able to pay taxes, and, therefore, should be taxed at the same rate.
In highlighting the limits of horizontal and individualist approaches to healthcare equity, Gavin raised two central questions: 'If, as is normally the case, ill health is not randomly distributed across different groups in society' but socially determined, 'might that society not want to give preference, on vertical equity
grounds, for health gains to those groups in that society who are on average in poor health?' and 'What weight might be applied to such health gains and how do we differentiate between what groups are more deserving?' (Mooney 1996:102).
(8) In light of these objectives, some of Congress' primary tax policy considerations include administrability, promotion of taxpayer compliance, equity (including both horizontal equity and vertical equity
), economic neutrality, and economic incentivization.
Emphasising that that principles of horizontal and vertical equity
are important if a tax system is to be seen as fair, Mukherjee said that tax administration, which includes mechanisms to register taxpayers, collect revenue, enforce compliance and provide redress when required, also has a direct bearing on fairness of tax policy.
(Equality of opportunity is one example.) Equality should incorporate both horizontal equity, which means that people in the same circumstances are treated in the same way, and vertical equity
, which means that differences in treatment are proportional to the differences between the circumstances of the people concerned.