Timeline for Can a progressive marginal taxation be regressive in terms of average tax rate?
Current License: CC BY-SA 4.0
6 events
| when toggle format | what | by | license | comment | |
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| Jun 4, 2019 at 22:47 | comment | added | Bill Clark | Giskard is correct that the fact that $T(0)=0$ tells us nothing about the rate at 0 income (and an argument involving limits can get around the 0/0 problem for computing the average) but I think it doesn’t actually matter. I think the rest of the argument holds anyway. | |
| Jun 4, 2019 at 15:33 | comment | added | Giskard | Why? Suppose $T(Y) = 20\% \cdot Y$. Then the average tax rate is constantly $20\%$, is it not? | |
| Jun 4, 2019 at 15:04 | comment | added | E. Sommer | if your income is zero, you don't pay taxes. at some point, you will start to pay one \$ on some amount of income. So your average tax rate will be very close to zero when taxation kicks in. | |
| Jun 4, 2019 at 15:03 | history | edited | Giskard | CC BY-SA 4.0 |
added 3 characters in body
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| Jun 4, 2019 at 15:02 | comment | added | Giskard | "you start with an average tax rate of zero" How so? | |
| Jun 4, 2019 at 14:56 | history | answered | E. Sommer | CC BY-SA 4.0 |