Just Taxation—A Positive Solution
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We may begin by assuming that there are only two categories of taxpayers: one, A, relatively well-to-do, and the other, B, relatively poor.Within each category all individuals must pay the same price for their participation in public consumption. The problem is the relative amount of the two prices, i.e. the distribution of the total cost of the collective goods between the two groups.
KeywordsCollective Activity Equilibrium Position Political Power Marginal Utility Public Activity
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