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Concept of Vertical Equity And Its Application To Tax Statues

October 5, 2019[2019] 110 taxmann.com 45 (Article)
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Equals be treated alike. Many have defined vertical equity (VE) as requiring an "appropriate pattern of differentiation among unequals”. It goes without saying that horizontal and vertical equity are but different sides of the same coin. Theoretically, VE could apply to a tax system that is progressive, proportional or regressive. Which of these designs is chosen depends upon one's underlying theory of justice and decisions about some key economic assumptions.
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