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This paper identifies fiscal policies, specifically tax and expenditure policies, that would contribute to reducing Horizontal (or group) Inequalities (HIs). It reviews how to identify relevant groups and how best to measure inequalities between them - both in income and in other dimensions. It notes the lack of adequate socioeconomic data broken down according to ethno-cultural categories in many countries, and suggests ways in which existing data may be used instead. It then looks firstly at taxation policy, and identifies changes to such policy that would contribute to reducing HIs.
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