How does government intervention to impose a tax burden affect horizontal equity in the market, particularly in relation to deadweight loss?

Government intervention, like imposing a tax, can change how fairly people are treated in the market, which is known as horizontal equity. Horizontal equity means that people in similar situations should be treated the same way. When a tax is added, it can create a deadweight loss, which is the loss of economic efficiency that occurs when the equilibrium outcome is not achieved. For example, if two people earn the same income but one pays more tax, they are not treated equally, leading to unfairness. This tax can also discourage people from buying or selling, creating a loss in overall market activity, which is what we call deadweight loss.