Revisiting the Classical View of Benefit-Based Taxation

Matthew  Weinzierl

Abstract

This article incorporates into modern optimal tax theory the classical logic of benefit‐based taxation in which an individual's benefit from the activities of the state is tied to his or her income‐earning ability. First‐best optimal policy is characterized analytically as depending on a few potentially estimable statistics. Constrained optimal policy, with a Pareto‐efficient objective that trades off this principle and conventional utilitarianism, is simulated using conventional constraints and methods. A wide range of optimal policy outcomes can result, including those that match well several features of existing policies. This analysis thereby contributes to the theory of positive optimal taxation.

Citation:

Weinzierl, Matthew. "Revisiting the Classical View of Benefit-Based Taxation." Economic Journal (Royal Economic Society) 128, no. 612 (July 2018).

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Case | HBS Case Collection | February 2014 (Revised October 2019)

Should Corporate Profits Be Taxed? (A)

Matthew Weinzierl, Katrina Flanagan and Michael Cianellli

Taxing corporations is popular, but why? Corporations do not bear the burden of taxes, people do, and the incidence of the corporate income tax burden is likely to be far different from what many of its supporters assume.
Instructors may also obtain a Teaching Note, written by this case's author, that provides suggestions for using this case effectively in the classroom.

Keywords: Economic versus statutory incidence; Basics of corporate taxation; Business Ventures; Taxation; Profit;

Citation:
Weinzierl, Matthew, Katrina Flanagan, and Michael Cianellli. "Should Corporate Profits Be Taxed? (A)." Harvard Business School Case 714-033, February 2014. (Revised October 2019.) View Details

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Supplement | HBS Case Collection | October 2019

Should Corporate Profits Be Taxed? (B)

Matthew C. Weinzierl and Michael Cianelli

Citation:
Weinzierl, Matthew C., and Michael Cianelli. "Should Corporate Profits Be Taxed? (B)." Harvard Business School Supplement 720-015, October 2019. View Details

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Case | HBS Case Collection | February 2015 (Revised August 2019)

Equality of Opportunity and Outcome in the U.S.

Matthew Weinzierl and Alastair Su

Equality of opportunity is endorsed universally even though, or more likely because, it can mean such different things to different people. What definition of equality of opportunity ought to figure into policy decisions? How close, or far, is the United States from providing equal opportunity?
Instructors may also obtain a Teaching Note, written by this case's author, that provides suggestions for using this case effectively in the classroom.

Keywords: equality of opportunity; justice; Opportunities; Equality and Inequality; Policy; United States;

Citation:
Weinzierl, Matthew, and Alastair Su. "Equality of Opportunity and Outcome in the U.S." Harvard Business School Case 715-028, February 2015. (Revised August 2019.) View Details

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Revisiting the Classical View of Benefit-Based Taxation

Abstract

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