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17 Apr 2007 08:54 pm
Fair taxes
[Megan] Greg Mankiw suggests that perhaps we should tax height:
Should
the income tax system include a tax credit for short taxpayers and a
tax surcharge for tall ones? This paper shows that the standard
utilitarian framework for tax policy analysis answers this question in
the affirmative. This result has two possible interpretations. One
interpretation is that individual attributes correlated with wages,
such as height, should be considered more widely for determining tax
liabilities.
Alternatively, if policies such as a tax on height are
rejected, then the standard utilitarian framework must in some way fail
to capture our intuitive notions of distributive justice.
Obviously, we need to reconsider the standard utilitarian framework.
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