Spreading the Wealth Around: Reflections Inspired by Joe the Plumber
AbstractThis essay discusses the policy debate concerning optimal taxation and the distribution of income. It begins with a brief overview of trends in income inequality, the leading hypothesis to explain these trends, and the distribution of the tax burden. It then considers the framework that economists use to address the normative problem of designing tax systems. The conventional utilitarian approach is found to be wanting, as it leads to prescriptions that conflict with many individuals’ moral intuitions. The essay then explores an alternative normative framework, dubbed the Just Deserts Theory, according to which an individual’s compensation should reflect his or her social contribution.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15846.
Date of creation: Mar 2010
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Other versions of this item:
- N Gregory Mankiw, 2010. "Spreading the Wealth Around: Reflections Inspired by Joe the Plumber," Eastern Economic Journal, Palgrave Macmillan, vol. 36(3), pages 285-298.
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
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- Thomas Cornelißen & Oliver Himmler & Tobias Koenig, 2012.
"Fairness Spillovers – The Case of Taxation,"
Working Paper Series of the Max Planck Institute for Research on Collective Goods
2012_17, Max Planck Institute for Research on Collective Goods.
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