<P> In public finance, horizontal equity is the idea that people with a similar ability to pay taxes should pay the same or similar amounts . It is related to the concept of tax neutrality or the idea that the tax system should not discriminate between similar things or people, or unduly distort behavior . </P> <P> Vertical equity usually refers to the idea that people with a greater ability to pay taxes should pay more . If the rich pay more in proportion to their income, this is known as a proportional tax; if they pay an increasing proportion, this is termed a progressive tax, sometimes associated with redistribution of wealth . </P> <P> Horizontal equity means providing equal health care to those who are the same in a relevant respect (such as having the same' need'). Vertical equity means treating differently those who are different in relevant respects (such as having different' need'), (Culyer, 1995). </P> <P> Health studies of equity whether particular social groups receive systematically different levels of care than do other groups . There are many ways to identify preventable or unjust disparities, including the study of health outcomes using quintile analysis or concentration indexes . </P>

Examples of economic equity in the united states