Are Progressive Taxation Systems Fair? Evidence from current taxation schemes across major countries and areas

Abstract

Empirical estimates of the extent of the personal sharing of taxation amount on utility function and to describe the sacrifice level of different households in different income tiers. Those functional forms of the utility functions capture a better representation of the sacrifice level of tax for households. Progressive taxation whole burden aims to impose fairness and a healthy taxation policy scheme. Fairness measures from tax sacrifice levels, not from an absolute amount of tax sacrifice. By conducting a progressive taxation scheme, what kind of principle can help to trigger a fairer taxation system? In this study, we found that the negative exponential utility function could help in building a fairer income taxation scheme for most progressive-applied countries. Which is closer to the principle of equal sacrifice based on our research. This study contributes to the existing literature on the investigation of a progressive tax system across nations.