Generalized Social Marginal Welfare Weights Imply Inconsistent Comparisons of Tax Policies

• 成果类型: Article
• 署名作者: Sher, Itai
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20211025
• 发表日期: 2024
• 页码: 3551-3577
• 关键词: Optimal taxation; income taxation

摘要

This paper concerns Saez and Stantcheva's ( 2016 ) generalized social marginal welfare weights, which aggregate losses and gains due to tax policies while incorporating nonutilitarian ethical considerations. The approach evaluates local tax changes without a global social objective. I show that local tax policy comparisons implicitly entail global comparisons. Moreover, whenever welfare weights do not have a utilitarian structure, these implied global comparisons are inconsistent. I argue that broader ethical values cannot in general be represented simply by modifying the weights placed on benefits to different people, and a more thoroughgoing modification of the utilitarian approach is required. ( JEL D60, D63, D71, H21, H23, I31)