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Voting over piece-wise linear tax methods

Working paper
Author/s: 
Juan D. Moreno-Ternero
Issue number: 
2010/80
Publisher: 
CORE
Year: 
2010
PDF [1]
We analyze the problem of choosing the most appropriate method for apportioning taxes in a democracy. We consider a simple theoretical model of taxation and restrict our attention to piece-wise linear tax methods, which are almost ubiquitous in advanced democracies world- wide. We show that if we allow agents to vote for any method within a rich domain of piece-wise linear methods, then a majority voting equilibrium exists. Furthermore, if most voters have income below mean income then each method within the domain can be supported in equilibrium.
Tags: 
Social Choice [2]

Source URL:http://coalitiontheory.net/content/voting-over-piece-wise-linear-tax-methods

Links
[1] http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2010_80web.pdf [2] http://coalitiontheory.net/research-areas/social-choice