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arXiv · 1711.06164

Rich or poor: Who should pay higher tax rates?

Paulo Murilo Castro de Oliveira
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Abstract

A dynamic agent model is introduced with an annual random wealth multiplicative process followed by taxes paid according to a linear wealth-dependent tax rate. If poor agents pay higher tax rates than rich agents, eventually all wealth becomes concentrated in the hands of a single agent. By contrast, if poor agents are subject to lower tax rates, the economic collective process continues forever.

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BibTeXRIS

Paulo Murilo Castro de Oliveira. 2017-11-15. Rich or poor: Who should pay higher tax rates?. https://doi.org/10.1209/0295-5075%2F119%2F40007

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