This study provides a model for tax policy decision makers to maximize total tax
revenue subject to typical external constraints. The model can then be used to
analyze the trade-offs among property types (constituents) that are available. It
verifies that due to inconsistent aggregation it is necessary to know the shape and
curvature of the total tax revenue curve to solve for the optimal tax revenue
condition. It is not sufficient to solve for singular optima for each type of property
and then assume that an overall optima will occur by aggregating the individual
optima. The pseudoconcave properties of the individual tax entities do not necessarily aggregate into a pseudoconcave multiple function form, due to inconsistent
aggregation, even under the simplified Cobb-Douglas function assumed in this
study.
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