The Uneasy Case for Progressive Taxation

Abstract

IAt the outset it is once again important to clarify the usage of the term "progressive taxation."The reference in this discussion is to the total system and not to any particular tax.Progression in essence concerns the relationship between the distribution of the aggregate burden among taxpayers and the distribution of what might be thought of as their taxable capacity.The relative capacities of taxpayers can plausibly be derived by comparing incomes or expenditures or wealth.In our society, progressivity usually is described and measured against a background of income.For the discussion ahead it is sufficient to label as "progressive" any system that takes in taxes a relatively larger