Abstract
This paper studies the possibility of progressive income taxation of heterogeneous populations. While a result due to Moyes and Shorrocks (1994) indicates that there does not exist a universally inequality-reducing tax structure which distinguishes between at least two subpopulations (in the sense of applying a different tax function to each subclass), it is shown here that a minimal refinement of the universality of inequality reduction leads one to a possibility conclusion. Informally stated, we prove the existence of uncountably many differentiated tax structures which are strictly progressive almost everywhere.
Original language | English (US) |
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Pages (from-to) | 527-543 |
Number of pages | 17 |
Journal | Social Choice and Welfare |
Volume | 14 |
Issue number | 4 |
DOIs | |
State | Published - 1997 |
ASJC Scopus subject areas
- Social Sciences (miscellaneous)
- Economics and Econometrics