vertical equity
- The principle that taxes should be levied on individuals based on their income level, where people with higher income pay a higher percentage of their income in taxes
- Vertical equity is evident when higher-income individuals are taxed at a greater rate than those with lower incomes.
- Progressive tax policies are designed to maintain vertical equity, ensuring the rich contribute a larger share of their wealth.
- Vertical equity in taxation makes sure that the financial burden is fairly distributed.
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