A Note on Equal Proportional Sacrifice

Cebula, Richard (1976): A Note on Equal Proportional Sacrifice. Published in: The American Economist , Vol. 21, No. 1 (30 April 1977): p. 72.

Abstract

This theoretical note proves a theorem on income tax rates. In particular, it proves that if the marginal utility of income is declining as income rises and if the relationship is represented by a rectangular hyperbola, under the equal proportional sacrifice principle, the tax rate will always be proportional.

• Item Type: MPRA Paper
• Language: English
• Keywords: equal proportional sacrifice principle; proportional income tax rate
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H22 - Incidence; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H31 - Household

References

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