It is rarely straightforward applying the concepts of vertical and horizontal equity to the tax system.

Question

Quizplus · Accepted Answer

Vertical and horizontal equity are complex concepts that can be difficult to apply consistently in tax policy. Vertical equity refers to the idea that those who have more should pay more, while horizontal equity refers to the idea that those who are in similar situations should pay similar amounts. However, determining who qualifies as "having more" or being in a "similar situation" can be tricky and subjective. Additionally, there may be competing goals or trade-offs to consider, making it difficult to achieve perfect equity in a tax system.

It Is Rarely Straightforward Applying the Concepts of Vertical and Horizontal