A ‘Rights-Based’ Approach to Optimal Tax Policy

46 Pages Posted: 7 Jun 2015 Last revised: 10 Apr 2017

See all articles by Eduardo Zambrano

Eduardo Zambrano

California State Polytechnic University, San Luis Obispo - Economics

Date Written: April 1, 2017

Abstract

This paper derives the tax system and size of government implied by principles of economic efficiency and aversion to the violation of individual rights. The optimal policy equalizes the gains individuals obtain from the governmental activity, relative to what they have a right to in its absence. Optimal taxes are progressive. However, because industrious individuals would fare well either way there will be limits to how much redistribution is recommended by the optimal policy.

Keywords: Fair and Efficient Taxes, Public Good Provision

JEL Classification: D63, H21, H41

Suggested Citation

Zambrano, Eduardo, A ‘Rights-Based’ Approach to Optimal Tax Policy (April 1, 2017). Available at SSRN: https://ssrn.com/abstract=2614997 or http://dx.doi.org/10.2139/ssrn.2614997

Eduardo Zambrano (Contact Author)

California State Polytechnic University, San Luis Obispo - Economics ( email )

Orfalea College of Business
San Luis Obispo, CA 93407
United States
805-756-5327 (Phone)
805-756-1473 (Fax)

HOME PAGE: http://calpoly.edu/~ezambran

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