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Voting over piece-wise linear tax methods

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  • Moreno-Ternero, Juan D.

Abstract

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 worldwide. 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.

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  • Moreno-Ternero, Juan D., 2011. "Voting over piece-wise linear tax methods," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 29-36, January.
    • Handle: RePEc:eee:mateco:v:47:y:2011:i:1:p:29-36
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    Cited by:

    1. Biung-Ghi Ju & Juan D. Moreno-Ternero, 2023. "Taxation behind the veil of ignorance," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 60(1), pages 165-181, January.
    2. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2023. "Decentralized revenue sharing from broadcasting sports," Public Choice, Springer, vol. 194(1), pages 27-44, January.
    3. Juan D. Moreno-Ternero & Tim Pawlowski & Shlomo Weber, 2024. "Domestic Competitive Balance and International Success: The Case of The Football Industry," Papers 2402.08396, arXiv.org.
    4. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2022. "On the axiomatic approach to sharing the revenues from broadcasting sports leagues," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(2), pages 321-347, February.
    5. René Brink & Juan D. Moreno-Ternero, 2017. "The reverse TAL-family of rules for bankruptcy problems," Annals of Operations Research, Springer, vol. 254(1), pages 449-465, July.
    6. Bergantiños, Gustavo & Moreno-Ternero, Juan D., 2021. "Compromising to share the revenues from broadcasting sports leagues," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 57-74.
    7. Juan D. Moreno-Ternero & Min-Hung Tsay & Chun-Hsien Yeh, 2020. "A strategic justification of the Talmud rule based on lower and upper bounds," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(4), pages 1045-1057, December.
    8. Chambers, Christopher P. & Moreno-Ternero, Juan D., 2021. "Bilateral redistribution," Journal of Mathematical Economics, Elsevier, vol. 96(C).
    9. Thomson, William, 2015. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: An update," Mathematical Social Sciences, Elsevier, vol. 74(C), pages 41-59.
    10. Słomczyński, Wojciech & Życzkowski, Karol, 2012. "Mathematical aspects of degressive proportionality," Mathematical Social Sciences, Elsevier, vol. 63(2), pages 94-101.
    11. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2019. "A family of rules to share the revenues from broadcasting sport events," Working Papers 19.07, Universidad Pablo de Olavide, Department of Economics.
    12. Juan D. Moreno‐Ternero & Min‐Hung Tsay & Chun‐Hsien Yeh, 2022. "Strategic justifications of the TAL family of rules for bankruptcy problems," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(1), pages 92-102, March.

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    More about this item

    Keywords

    Voting Taxes Majority Single-Crossing Talmud;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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