Horizontal equity is extremely compatible with the benefit principle.

Question

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Horizontal equity, which means that individuals with similar income or assets should pay the same amount in taxes, can conflict with the benefit principle, which suggests that taxes should be levied according to the benefits received from government services. This can lead to different tax treatments for individuals with similar financial situations, depending on their use of or benefit from public services.

Horizontal Equity Is Extremely Compatible with the Benefit Principle