REDISTRIBUTIVE TAXATION WITHOUT EXCESS BURDEN*

In: Economics & politics, Band 5, Heft 1, S. 53-60

Abstract

Redistributive taxation imposes no excess burden when: (a) the taxed group behaves collusively and takes into account government behavior, and (b) the redistribution outcome is an interior solution (i.e., after redistribution the government values a marginal dollar of income to each class equally). There is no dynamic inconsistency in capital taxation under the same conditions.