What is difference between horizontal and vertical equity

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1. What is the difference between horizontal and vertical equity? How do tax preferences affect people's view of horizontal equity?

2. Montel argues that a flat income tax rate system is vertically equitable. Oprah argues that a progressive tax rate structure is vertically equitable. How do their arguments differ? Who is correct?

3. Discuss why evaluating vertical equity simply based on tax rate structure may be less than optimal.

Reference no: EM13905343

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