vertical equity
finance
Quick Summary
Vertical equity is a principle of fairness in taxation that concerns how taxes are distributed among individuals at different income levels. It posits that those with a greater ability to pay should contribute more to the government's support. This is often achieved through a progressive tax system, where tax rates increase as income rises. The goal is to ensure that individuals with higher incomes bear a proportionally larger tax burden, reflecting their greater capacity to pay.12
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