What Are The Two Principles Of Tax Fairness Explained

What does the principle of tax equality entail? Contrary to a common misconception, tax equality doesn’t imply that every individual should contribute the same fixed amount in taxes. Instead, the essence of tax equality lies in ensuring that the burden of taxation is distributed fairly according to one’s financial capacity. In practice, this translates to a progressive tax system where those with higher incomes shoulder a greater tax responsibility, while individuals with lower earnings pay proportionally less. In other words, tax equality strives to establish a system where the tax burden aligns with the taxpayer’s ability to pay, with the aim of reducing disparities and promoting economic fairness.

The principle of equity recognizes the existence of historically marginalized and underrepresented communities. It emphasizes the importance of addressing the disparities and imbalances that have persisted over time. Equity is essential for promoting fairness and leveling the playing field, ensuring that all groups have equal access to opportunities and resources. This principle aims to rectify historical injustices and create a more inclusive society where everyone can thrive.