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The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution

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Author Info
N. Gregory Mankiw
Matthew Weinzierl

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Abstract

Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall person earning $50,000 should pay $4,500 more in tax than a short person. One interpretation is that personal attributes correlated with wages should be considered more widely for determining taxes. Alternatively, if policies such as a height tax are rejected, then the standard Utilitarian framework must fail to capture intuitive notions of distributive justice.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14976.

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Date of creation: May 2009
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Handle: RePEc:nbr:nberwo:14976

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Find related papers by JEL classification:
H2 - Public Economics - - Taxation, Subsidies, and Revenue
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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This page was last updated on 2009-11-25.


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