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

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Cebula, Richard (1976): A Note on Equal Proportional Sacrifice. Published in: The American Economist , Vol. 21, No. 1 (30 April 1977): p. 72.
Classification:	H22 - Incidence ; H24 - Personal Income and Other Nonbusiness Taxes and Subsidies ; H31 - Household
Source:	BASE

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