BibTeX
@MISC{Abbasian06benefittaxation,
author = {Ezatollah Abbasian and Gareth D. Myles},
title = {Benefit Taxation and Public Good Provision},
year = {2006}
}
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Abstract
We apply the principle of benefit taxation to the provision of a public good and contrast it to other principles of taxation. Optimal benefit taxes are shown to involve both efficiency and equity compo-nents. When there are no informational restrictions, they lead to the same outcome as ability-to-pay taxation. Hence the two systems are equivalent. Taxes based on equal absolute sacrifice lead to the same outcome when there are no income differentials. When there are in-come differentials, they generally imply a higher level of public good provision.
