Example of Vertical Equity . For an example of vertical equity, consider a taxpayer who earns $100,000 per annum and another who earns $50,000 per annum. If the tax rate is flat and proportional ...

Use your mouse to size the graph's vertical and horizontal axis equally. Click the "Save" button to save the changes to the spreadsheet and the graph. Advertisement. Article continues below this ad.

Reading across the chart, people who make roughly the same amount of money can pay wildly different tax rates. In the middle quintile, tax rates vary from 1.7% to 23.5%. In the richest quintile ...