The Resource The ability-to-pay theorie of taxation

The ability-to-pay theorie of taxation

Label
The ability-to-pay theorie of taxation
Title
The ability-to-pay theorie of taxation
Creator
Subject
Language
eng
Summary
Ability to pay, the dominant theory of taxation, is usually interpreted in terms of sacrifice. It is held to justify progressive taxation under any one of three possible interpretations of sacrifice: the equal, equal-proportional, and least-sacrifice theories. These theories rest in turn on three assumptions: the declining marginal utility of money with an increase in its supply, the existence of sacrifice arising from the payment of taxes, and the quantitative expression of that sacrifice. Analysis discloses each of these supports to be defective and thereby breaks down the theory of ability to pay. Progressive taxation may, however, be justified on other grounds. These grounds should be founded on the broad realities of the economic system. Taxes have economic effects, and these effects entail social consequences. The choice of the taxes to be laid and rates at which they are to be applied expresses a preference for one set of economic effects, and hence of social consequences, to another. The theory of taxation, progressive or other, should correspond to these facts
Citation source
In: American economic review. - Pittsburgh. - Vol. 29 (1939),
http://library.link/vocab/creatorName
Kendrick, M.S
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • ability to pay
  • progressive income tax
  • fiscal sociology
Label
The ability-to-pay theorie of taxation
Instantiates
Publication
Label
The ability-to-pay theorie of taxation
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.37366609999999 4.9336932
Processing Feedback ...