Nontaxable income and necessary consumption: the Rousseau’s paradox of fiscal egalitarianism Report as inadecuate




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Abstract

The traditional concept of a strict minimum of necessary consumption and nontaxable income equal for all taxpayers embedded in most current income-tax systems is the result of a paradox of fiscal egalitarianism. The paper shows that substituting the traditional notion of a strict minimum of nontaxable income Surplus Income Tax Method for a scheme of growing personal allowances to meet the amounts of necessary consumption required by the different living standards of the taxpayers Discretionary Income Tax Method generates an income-tax scheme more progressive than the traditional one. In the paper we also show that this alternative proposal for nontaxable incomes generates an after-tax income distribution less unequal Lorenz dominance and superior in terms of social welfare Atkinson, 1970.



Item Type: MPRA Paper -

Original Title: Nontaxable income and necessary consumption: the Rousseau’s paradox of fiscal egalitarianism-

Language: English-

Keywords: nontaxable income, necessary consumption, progressivity, tax burden, income distribution-

Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and MeasurementD - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their DistributionsH - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies-





Author: Faíña, Andres - A.

Source: https://mpra.ub.uni-muenchen.de/32909/







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