Progression and the Design of tax Functions

  • Andreas Pfingsten
Part of the Studies in Contemporary Economics book series (CONTEMPORARY, volume 20)


Many taxpayers are very much concerned about hidden increases in the degree of progression going along with increases in pre-tax income. The situation is the following: If the income tax function is progressive in the sense that the average tax rate is increasing in income before tax, then this implies a decrease in the ratio of net income to income before tax. In an economy where all incomes increase over some periods of time, not necessarily with the same rate, the share that the government collects of the income before tax earned by the people increases, unless the tax function is changed.


Income Scale Revenue Constraint Average Rate Progression Inequality Concept Revenue Parameter 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1986

Authors and Affiliations

  • Andreas Pfingsten
    • 1
  1. 1.Institut für Wirtschaftstheorie und Operations ResearchUniversität KarlsruheKarlsruheGermany

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