TY - JOUR
T1 - Personal income taxation and the principle of equal sacrifice revisited
AU - Mitra, Tapan
AU - Ok, Efe A.
PY - 1996/11
Y1 - 1996/11
N2 - This paper shows that, in the domain of piecewise linear statutory income tax functions, the principle of equal sacrifice implies tax progressivity. The progressivity implication of the doctrine is, in fact, stronger: the equal sacrifice principle, in essence, characterizes marginal rate progressivity, a result which is in sharp contrast with the standard literature on public finance. We also apply our findings to the personal statutory income taxation practices of the OECD countries and observe that the United States and Turkey were the only ones violating the principle of equal sacrifice in the time period 1988 to 1991.
AB - This paper shows that, in the domain of piecewise linear statutory income tax functions, the principle of equal sacrifice implies tax progressivity. The progressivity implication of the doctrine is, in fact, stronger: the equal sacrifice principle, in essence, characterizes marginal rate progressivity, a result which is in sharp contrast with the standard literature on public finance. We also apply our findings to the personal statutory income taxation practices of the OECD countries and observe that the United States and Turkey were the only ones violating the principle of equal sacrifice in the time period 1988 to 1991.
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U2 - 10.2307/2527317
DO - 10.2307/2527317
M3 - Article
AN - SCOPUS:0347767862
SN - 0020-6598
VL - 37
SP - 925
EP - 948
JO - International Economic Review
JF - International Economic Review
IS - 4
ER -