Sacrifice principle and the Benefit principle of Taxation - DARP
Sacrifice principle and the Benefit principle of Taxation - DARP
Sacrifice principle and the Benefit principle of Taxation - DARP
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The Concept <strong>of</strong> Equal <strong>Sacrifice</strong> in <strong>Taxation</strong><br />
Ideally, everyone has <strong>the</strong>ir own utility function<br />
Impossible in practice<br />
A more practical method: to consider U(x) as <strong>the</strong><br />
utility function <strong>of</strong> a “representative” member <strong>of</strong><br />
society (Robbins, 1939; Musgrave, 1959)<br />
Everyone in <strong>the</strong> society is treated as if <strong>the</strong>y had same<br />
utility function
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