Compare The Effects Of A Proportional Income Tax And A Progressive Flat Rate Income 2264340

Compare the effects of a proportional income tax and a progressive flat-rate income tax, that is, one in which there is a lump-sum grant from the government of, say $5,000, and then a constant marginal tax rate on all income. I want you to see whether if the two taxes raise the same revenue, and all individuals have the same income, utility will be higher with the proportional tax.

Prof. Angela

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