Re: Consumption 2: The Return (With New and Improved Definitions and Proofs!)

From: Jeff Bone (jbone@jump.net)
Date: Fri Mar 30 2001 - 07:45:35 PST


Russell Turpin wrote:

> I don't buy it, Jeff. You've restricted the notion
> of EQUITABLE so that it applies only when
> two people consume the same proportion of
> their income. We already know, those who earn
> less tend to consume a greater proportion of
> their income. It's pretty obvious why, since
> Popeye's Chicken charges the same to both
> me and my neighbor who earns minimum wage.
> So what's the point? How is a tax system
> equitable when it slows wealth accumulation for
> lower wage earners, unless they rather
> heroically cut back their consumption to be
> proportional to that of their higher earning
> brethren?

Cf. Regressive vs. Progressive...

jb



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