Horizontal Equity

Horizontal equity describes a society where people who have similar amounts of wealth should pay similar amounts of taxes to each other. However, “horizontal equity” can be used in a more general sense (not just taxes). For instance, horizontal healthcare implies the idea that people having similar health problems are getting similar healthcare for those problems.

In the U.S., where deductions, tax credits, and incentives make tax time oh-so-fun, it’s hard to guarantee that two people with the same wealth will be taxed similarly.

Horizontal equity differs from vertical equity, which describes a society with redistributive taxes...with the wealthier tax brackets having larger percentages than the lower ones. Horizontal equity is all about treating certain groups the same (not everyone).