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Equity in Taxation Explained

Differences between vertical equity and horizontal equity in income tax collection. Vertical equity means collecting income tax in a way that is linked to taxpayers' income levels, so higher income taxpayers pay more tax. Horizontal equity means taxpayers with similar incomes should pay similar amounts of tax.

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Mohammed Khouli
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0% found this document useful (0 votes)
34 views1 page

Equity in Taxation Explained

Differences between vertical equity and horizontal equity in income tax collection. Vertical equity means collecting income tax in a way that is linked to taxpayers' income levels, so higher income taxpayers pay more tax. Horizontal equity means taxpayers with similar incomes should pay similar amounts of tax.

Uploaded by

Mohammed Khouli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Differences Vertical equity Horizontal equity

Meaning Method of collected income tax


by link the taxes with the income

Type 1-

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