Minimum Sacrifice versus Equal Sacrifice — Francis Y. Edgeworth
The Langenderfer Library: Classics in Tax, Economics, and AccountingShow Notes
How should the burden of taxation be distributed when taxpayers differ in income and in the value they place on an additional dollar? Francis Y. Edgeworth compares two influential standards of tax justice: minimizing the total sacrifice caused by taxation and equalizing sacrifice among taxpayers.
Drawing on marginal utility, Edgeworth explores the logic behind progressive taxation and the difficult relationship between measurable economic welfare and ethical judgment. The essay is a foundational contribution to optimal taxation and the theory of ability to pay.
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