ABSTRACT
Income taxes are either universal or partial. The partial income taxes are uniform, quasi-schedular, or schedular. The universal income tax places the personal exemption so low that virtually every household pays income tax or, if the number of dependents is large, at least must file a return. The tax is virtually one on property income, including income from human capital, particularly training for the professions, and on economic rent from superior inborn ability. The differential-incidence analysis, implying a general equilibrium approach, in contrast to the partial-equilibrium analysis, must be used when the economy is a closed one so that there is no tax-free area to which capital or labor can move. The differential incidence of sales tax and income tax with respect to income classes, or wealth classes, or size of household is to be evaluated under the conflict criteria.
