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- Title
THE MEASUREMENT OF PROGRESSIVITY AND BUILT-IN FLEXIBILITY.
- Authors
Slitor, Richard E.
- Abstract
This article focuses on the technique of calculating degree of progression at a given income point, used for tax schedules. Although the degree of progression at a given income point, defined as the slope of the curve of effective rate of tax, is an integral part of the theory and terminology of public finance, a search of the literature reveals that no convenient and effective method has been developed for the measurement and quantitative analysis of this important characteristic of tax schedules. Such a technique of measurement is described in this article. While the method suggested here is applicable or at least adaptable, to other forms of taxation, the study is centered on the individual income tax. The article presents a detailed analysis of the pattern of progression under the present Federal individual income tax. Two curves show the marginal and effective rates provided by the Revenue Act of 1945, applicable to 1946 and later years, for a married person with no dependents. The analysis is confined to net incomes up to $100,000. This permits the use of an arithmetic income scale and avoids the distortion involved in the logarithmic scale which would be necessary in showing larger amounts of income.
- Subjects
PROGRESSIVE taxation; INCOME tax; TAXATION; QUANTITATIVE research; RESEARCH; INCOME
- Publication
Quarterly Journal of Economics, 1948, Vol 62, Issue 2, p309
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883224