A Note on Equal Proportional Sacrifice

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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Year of publication:	1976-03-21
Authors:	Cebula, Richard
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	equal proportional sacrifice principle \| proportional income tax rate

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Notes:	Published in The American Economist 1.21(1977): pp. 72
Classification:	H22 - Incidence ; H24 - Personal Income and Other Nonbusiness Taxes and Subsidies ; H31 - Household
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011112415