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The Political Economy of Progressive Taxation (Paperback, Softcover reprint of the original 1st ed. 1989)
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The Political Economy of Progressive Taxation (Paperback, Softcover reprint of the original 1st ed. 1989)
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This volume presents papers which were given at a conference of the
Liberty Fund, Washington, co-sponsored by the Carl-Menger
Institute, Vienna. The conference took place in Vienna in January
1988. All papers were subject to a refereeing process; some of them
had to be revised very extensively. The economics of progressive
taxation have been a research topic ever since economists have
dealt with the economic role of the state. Old puzzles are the
best: the theoretical underpinning of progressivity still is not
fully convincing, even after 200 years of economic research. In the
present volume we succeeded in publishing some contributions of
outstanding economists which present their visions of the topic.
Niskanen distinguishes two types of contributions of public choice
analysis to understanding and evaluating the tax and transfer
system in modern economics: the positive analysis, which examines
the issue of how a tax and transfer system would look if it were
established by a government subject to majority rule; . and the
normative analysis, which tries to discern an optimal system of
taxes and transfers. In the normative case the author distinguishes
between the "libertarian perspective", in which each person has
full rights to any property that he has acquired legally and in
which transfers are determined entirely by the preferences of the
donors, and the so-called "constitutional perspective" , in which
each person elects the rules affecting taxes without knowledge of
his position in the post constitutional distribution.
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