A "NEW" VIEW OF EQUITY IN TAXATION?

Date

1992

Author

HORSMAN, George

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The article identifies four concepts of equity (based respectively on ability to pay theory, benefit theory, the Rawlsian approach and Hobbesian theory) and applies them to (a) the pure income tax and (b) the expenditure tax commonly advocated as a replacement for income tax. The conclusion drawn is that whereas ability-to-pay equity is most appropriate in taxing those on low incomes, a Hobbesian tax, which offers reliefs for faierit', notably in the form of a willingness to save, may be at least as appropriate for taxing the rich. The article then considers alternative versions of a hybrid two-tier tax which could achieve equity in the two different senses for different income groups.

URI

https://hdl.handle.net/11511/110593

Collections

Department of Economics, Article