Definition
- Horizontal equity
- Horizontal equity is treating people in the same economic position in the same way, so that people with equal incomes pay equal tax.
Example
Can you think of an example of horizontal equity?
Two nurses in England each earn £38,000 a year, one in Leeds and one in Bristol. They pay the same income tax, whatever their postcode, hobbies or family name.
Test yourself
Can you name the two kinds of equity economists use to judge whether people are treated fairly?