If horizontal equity is achieved in taxation,

Name: If horizontal equity is achieved in taxation,
Brand: Quizplus
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Quizplus · Accepted Answer

Horizontal equity in taxation means that individuals with equal economic capacity will pay equal taxes. This in turn means that vertical equity can also be achieved, since those with higher economic capacity will pay a higher amount of taxes. However, this does not necessarily mean that a flat-rate tax will be used or that there will be no losses in efficiency in markets.

If Horizontal Equity Is Achieved in Taxation