The Discriminative Effect of Taxes

9 Pages Posted: 6 May 2010 Last revised: 26 Jul 2013

Atiram Barak

Tel Aviv University

Uri Weiss

Hebrew University of Jerusalem - Center for the Study of Rationality

Date Written: May 5, 2010

Abstract

How can we reduce gender and racial discrimination? One way relies on the "invisible hand"; another recognizes that people in the marketplace have racial preferences, and therefore that we need anti-discrimination laws in order to decrease discrimination. The surprising answer this paper proposes is that we can reduce gender and racial discrimination by reducing income and company taxes! This is because when the gains from discrimination are untaxed, a higher tax will lead to more discrimination. We will present this proposition, and then explain why it is realistic to think that gains obtained through discrimination are untaxed.

Keywords: Tax, Discrimination, Law and Economics, Gender, Race

JEL Classification: K00

Suggested Citation

Barak, Atiram and Weiss, Uri, The Discriminative Effect of Taxes (May 5, 2010). Available at SSRN: https://ssrn.com/abstract=1600866 or http://dx.doi.org/10.2139/ssrn.1600866

Atiram Barak

Tel Aviv University ( email )

Ramat Aviv
Tel Aviv 69978, 6997801
Israel

Uri Weiss (Contact Author)

Hebrew University of Jerusalem - Center for the Study of Rationality ( email )

Feldman Building
Givat-Ram
Jerusalem, 91904
Israel

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