Abstract
In Chapter 4 the concept of Pigovian taxes was broadly introduced. It was benchmarked against the current income tax systems and it was concluded that the Pigovian tax model can account for a robust model when introduced on a portfolio level and without the interference of other taxes applied at the same point in time. It could be instrumental towards all three major drivers of taxation, i.e. (1) consistently raising tax revenues, (2) redistribution of income, and (3) steering behavior towards socially desirable outcomes.
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