If we knew ability, how would we tax individuals?

• 成果类型: Article
• 署名作者: Plug, EJS; van Praag, BMS; Hartog, J
• 署名单位: Tinbergen Institute; University of Amsterdam; Wageningen University & Research; Tinbergen Institute; University of Amsterdam
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00086-3
• 发表日期: 1999
• 页码: 183-211
• 关键词: earnings capacity; earnings function; welfare function; ability taxation

摘要

The suggestion to tax people on earnings capacity instead of earnings has been around for a long time and is attractive in terms of economic efficiency. In this paper we reflect on the feasibility of such a system and give an exploratory empirical implementation. We apply the Leyden Welfare Function of Income, a survey based measure of an individual's welfare associated with income, to derive implications for ability taxation. Under the assumption that IQ and schooling reflect earnings capacity, we derive the tax functions using different criteria to distribute the utility loss due to taxation. (C) 1999 Elsevier Science S.A. All rights reserved.