Question
A proportional tax requires everyone to pay fixed share a > 0 of total income y in taxes, so that their tax bill is t(y)
A proportional tax requires everyone to pay fixed share a > 0 of total income y in
taxes, so that their tax bill is t(y) = ay.
Verify using properties of the Lorenz curve that inequality is unchanged by a proportional tax.
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
