We have already looked at the macroeconomic objective of promoting equity, why we have it and how we measure it. It is also important for us to look at the different measures we can use in order to promote equity. The areas we focus upon are the use of transfer payments and differing taxation systems. We have already seen that taxes can be divided into direct and indirect, but there are other ways of classifying taxes such as progressive, regressive and proportional. We will be looking at the maths involved in these types of taxes at a later date in the higher level lessons.