A Fundamental Objection to Tax Equity Norms: A Call for Utilitarianism / Louis Kaplow.

Format:

Book

Author/Creator:

Kaplow, Louis.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4961.

NBER working paper series no. w4961

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

A Fundamental Objection to Tax Equity Norms

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1994.

Summary:

Anti-utilitarian norms often are used in assessing tax systems. Two motivations support this practice. First, many believe utilitarianism to be insufficiently egalitarian. Second, utilitarianism does not give independent weight to other equitable principles, notably concerns that reforms may violate horizontal equity or result in rank reversals in the income distribution. This investigation suggests that a policy maker who believes in the Pareto principle -- that any reform preferred by everyone should be adopted - - cannot consistently adhere to any of these anti-utilitarian sentiments. Moreover, the affirmative case for utilitarian tax policy assessment is stronger than is generally appreciated.

Notes:

Print version record

December 1994.