This article extends the author's previous publication in PFQ on the utility Abstract sacrifice rules of taxation. Whether a particular sacrifice rule and income utility function together require progressive. proportional, or regressive taxation is shown to be independent of the manner in which the degree of progression is measured. Musgrave's three alternate ways of measuring progression are considered: average rate, liability, and residual income progression.
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References
1.
MusgraveR. A.MusgraveP. B. (1976) Public Finance in Theory and Practice (second ed.) New York: McGraw-Hill.
2.
VitalianoD. F. (1973) “A reconsideration of some aspects of the utility sacrifice rules of taxation.”Public Finance Q. 1 (January): 59–65.
