We study an optimum-taxation model, where individuals differ not only in earning abilities, but also in inherited endowments. We show first that an expenditure tax (which is equivalent to a tax on endowments), combined with an optimum nonlinear income tax, is desirable according to a utilitarian social objective, if on average high-able individuals have larger endowments that low-able. Secondly...

This special issue of Tobacco Control for World No Tobacco Day is focused on the theme of Price and Trade. Last year, Dr Margaret Chan of the WHO called on countries to increase tobacco taxes to combat the tobacco epidemic. Chan observed that “raising taxes on tobacco is the most effective way to reduce use and save lives” (Ibid). She commented that “determined action on tobacco tax policy hits...

We characterize optimal redistributive taxation when individuals are heterogeneous in their skills and their values of non-market activities. Search-matching frictions on the labor markets create unemployment. Wages, labor demand and participation are endogenous. Average tax rates are increasing at the optimum. This shifts wages below their laissez faire value and distorts labor demand upwards....

The prevailing wisdom in scholarly and policy-making institutions dealing with public health is that skillful use of price taxation policy will reduce the prevalence tobacco consumption because inverse relationship between consumption. Empirical evidence this axiomatic has been sparse. This paper analyzes effects increased on products 162 countries during 2005-2020. Results indicate there weak ...

The tide against the tobacco industry is growing. The World Health Organisation (WHO) Framework Convention on Tobacco Control (FCTC), a global public health treaty on tobacco control, has been ratifi ed by 174 WHO Member States covering more than 87% of the world’s population.1 At the recently concluded 15th World Conference on Tobacco or Health in Singapore, the Director General (WHO), Dr Marg...

there is always a considerable difference between the corporate performance and the tax levy that is identified by the taxation authorities which has become a common practice. this fact has led to no fairness among taxpayers, a fact that influences the horizontal and vertical sides of equity. horizontal equity is created when people feel the benefits of the tax gain that is proportional to the ...

BACKGROUND Tobacco is the only consumer product known to kill half of its users, and is a significant cause of death and disability to exposed nonsmokers. This presents a unique conundrum for modern democracies, which emphasize personal liberty, yet are obligated to protect citizens. In Israel, the death toll in 2014 from smoking is expected to reach 8000 deaths; nearly a fifth of the populatio...