Horizontal and Vertical Equity: The Musgrave/Kaplow Exchange

Over the past several years, Professors Richard Musgrave and Louis Kaplow have engaged in an exchange over the question whether the concept of horizontal equity has any independent significance apart from vertical equity. Kaplow answers that question in the negative, Musgrave in the affirmative. The purposes of this comment are (1) to sort out the issues raised in the Musgrave-Kaplow exchange, and (2) to set forth a somewhat different perspective from which to view those issues.