Voting Over Piece-wise Linear Tax Methods
The authors analyze the problem of choosing the most appropriate method for apportioning taxes in a democracy. They consider a simple theoretical model of taxation and restrict their attention to piece-wise linear tax methods, which are almost ubiquitous in advanced democracies world-wide. They show that if they allow agents to vote for any method within a rich domain of piece-wise linear methods, then a majority voting equilibrium exist. Furthermore, if most voters have income below mean income then each method within the domain can be supported in equilibrium.