On the Least Sacrifice Principle in Taxation

Authors: 
Nir Dagan
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.

Date: 
June, 1994
Published in: 
Number: 
50