Munich Personal RePEc Archive

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.

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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.

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