ABSTRACT
The fall in the number of percentage points
of annual output associatedwith a reduction
in price inflation byone percentage point.
sacrifice theory (H2)
The assertion that taxation should be
based on ABILITY TO PAY. This approach to
taxation can be traced back to Adam
SMITH and John Stuart MILL. It has been
criticized for assuming that INTERPERSONAL
UTILITY COMPARISONS are possible and for
ignoring DISINCENTIVE EFFECTS of taxation.
