Abstract
While horizontal equity is an influential norm, its proper role in tax analysis is unclear. Policies that treat equals equally are generally not optimal. When taxpayers lobby, however, maintaining horizontal equity reduces the resources used to influence policy. If the reduction in influence costs is larger than the increased deadweight loss of taxation, then a norm of horizontal equity will enhance welfare according to standard criteria. Thus, there is a role for horizontal equity in reducing political conflict that does not accord it an independent ethical basis.
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