, 5 tweets, 1 min read Read on Twitter
Bleg for econ experts: why are nonlinear tax codes so popular, when you can totally make linearizing tax reforms progressivity-neutral?
Specifically, consider an income tax as on the left vs on the right. The two can easily be equivalent in revenue *and* net impact on Gini.
Linear tax codes are superior because marginal tax rate is independent of context, paving the way for simplification...
... the possibility of much more privacy-preserving tax collection (don't need to know who is buying/selling, just that the tx took place)
So... what is the standard econ argument for not immediately switching to this?
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