On the Least Sacrifice Principle in Taxation

Abstract:

Utilitarian philosophers and economists recommended that when applying taxation programs, government should minimize the sum total of sacrifice made by individuals. This paper presents a model and an axiom system of taxation policies, in which the Least Sacrifice Principle is derived. A key axiom in our characterization is self-consistency. Other relations between self-consistency and welfare maximization in our model and in other models are also discussed.

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