Abstract

This fable is designed to demonstrate that merely knowing the structure of two taxes that raise equal amounts of revenue will rarely be sufficient to determine which tax will prove preferable for a specific reference group. Most particularly, it shows that any of the traditional forms of taxation on labor may prove beneficial to the laborers themselves. The taxes considered are lump sum levies collected as money or labor, and proportional and nonproportional taxes on wage earnings. The analysis takes the form of a series of examples yielding counter-intuitive results. An epilogue discusses simulations and unstable equilibria.

Full Text
Paper version not known

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 call

Disclaimer: 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.