Abstract
In this article the authors demonstrate that it is possible to derive a rate schedule of the personal income tax based on the ability to pay principle. The derivation uses three basics: the theory of the lognormal welfare function of income, the theory of equal (proportional) utility sacrifice and results from empirical research, based on the former theory. As an illustrative application the authors present an ‘optimal’ distribution of the personal income tax in the Netherlands in 1973, which is then confronted with the actual distribution of the personal income tax in 1973.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
