To test whether equity in educational expenditure can include equity for taxpayers, the authors analyze two suggested methods for achieving educational equity. The two methods are district power equalizing (DPE), which grants state aid in inverse proportion to school district wealth, and the wealth neutral system (WNS), which takes account of districts' elasticity in wealth and educational costs in allocating state funds. After defining the concepts of educational and taxpayer equity, the authors describe the two methods and estimate their effects on both types of equity. As a further step, they perform a simulation test of the two systems, using data on all school districts in Pennsylvania as their empirical base. Estimates of wealth and cost elasticity for these districts allow the authors to simulate the effects of DPE and WNS on educational and taxpayer equity in several different ways. They employ two methods of identifying rich and poor districts as well as a new technique for estimating the effects on equity of differing mixes of residential and nonresidential property. The paper concludes that in Pennsylvania both DPE and WNS would fail to achieve taxpayer equity. (Author/RW)