ABSTRACT
The income tax will exercise an effect on population through the redistribution of purchasing power that it brings about in the community. The size of population of any given income class in the community, will depend on two factors, the birth rate and the death rate for that class. Its net fertility rate is equal to (birth rate— death rate), and gives the rate at which the population of the class increases in size. The time-variation of population is more complicated than the usual case in economics, in which the tendency for each variable is to move progressively from its initial level towards the long-period adjustment. Movements in the birth rate of the lower-income classes in the short period immediately following on the imposition of the income tax. The movement that will take place in the death rate of the community, as a result of the imposition of the tax and the expenditure of its proceeds, will be a slow fall.
