Abstract

http://ssrn.com/abstract=170696
 
 

References (69)



 
 

Citations (2)



 
 

Footnotes (60)



 


 



The Uneasy Case for the Flat Tax


F. H. Buckley


George Mason University - Antonin Scalia Law School, Faculty

Eric Bennett Rasmusen


Indiana University - Kelley School of Business - Department of Business Economics & Public Policy

July 13, 1999

Indiana University, Business Economics and Public Policy Working Paper No. 99.002; and George Mason Law & Economics Working Paper No. 00-10

Abstract:     
Social contract theories assume that because personal security and private property are at risk in a state of nature, citizens will agree to grant Leviathan a monopoly of violence. But what is to prevent Leviathan from turning on his citizens once they have lain down their arms? The social contract leaves citizens worse off unless Leviathan can fetter himself, as constitutional democracies seek to do. Self-binding fetters are hard to find. We suggest that schemes of progressive taxation, in which marginal tax rates increase with taxable income, may be useful incentives to realign Leviathan?s incentives with those of his citizens. Income taxes give Leviathan an equity claim in his state?s economy, and progressive taxes give him a greater residual interest in upside payoffs. Leviathan will then demand higher side payments from interest groups before he imposes value-destroying regulations.

Note: A revised version of this working paper is forthcoming in Constitutional Political Economy

Number of Pages in PDF File: 32

JEL Classification: H00, H11, H21, H50, L50, L51, P00


Open PDF in Browser Download This Paper

Date posted: July 26, 1999  

Suggested Citation

Buckley, F. H. and Rasmusen, Eric Bennett, The Uneasy Case for the Flat Tax (July 13, 1999). Indiana University, Business Economics and Public Policy Working Paper No. 99.002; and George Mason Law & Economics Working Paper No. 00-10. Available at SSRN: http://ssrn.com/abstract=170696 or http://dx.doi.org/10.2139/ssrn.170696

Contact Information

Francis (Frank) H. Buckley
George Mason University - Antonin Scalia Law School, Faculty ( email )
3301 Fairfax Drive
Arlington, VA 22201
United States
703-993-8028 (Phone)
703-993-8088 (Fax)

Antonin Scalia Law School, George Mason University Logo

Eric Bennett Rasmusen (Contact Author)
Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )
Enter your address line 1 here
Enter your address line 2 here
Bloomington, IN Enter your state here 47405
United States
812-855-9219 (Phone)
812-855-3354 (Fax)
HOME PAGE: http://rasmusen.org

Feedback to SSRN


Paper statistics
Abstract Views: 2,151
Downloads: 231
Download Rank: 66,967
References:  69
Citations:  2
Footnotes:  60

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 2.485 seconds