Document Type

Article

Publication Date

3-2022

Journal Title

University of Richmond Law Review

ISSN

0566-2389

Abstract

With a few caveats, standard economic models assume that, from society’s perspective, the payment of a tax constitutes a costless transfer from the taxpayer to the government. The financial loss to the taxpayer is exactly offset by the financial gain to the government, which can use the resulting tax revenue for the benefit of its citizens. In other words, paying taxes forces taxpayers to forgo private consumption, but the resulting loss in utility can be counterbalanced by an increase in utility from government spending. In fact, if the government spends wisely on beneficial public goods that are undersupplied by private markets, then the taxand-transfer system can produce a net gain in utility that increases social welfare.

First Page

545

Last Page

600

Num Pages

56

Volume Number

56

Issue Number

2

Publisher

University of Richmond

FIle Type

PDF

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