Review article

https://doi.org/10.3935/rsp.v30i1.1845

Friedrich Hayek on Taxation and Income Redistribution

Predrag Bejaković orcid.org/0000-0002-4164-8220 ; The Institute of Public Finance, Zagreb, Croatia
Lukša Lulić ; Zagreb School of Business, Zagreb, Croatia
Goran Luburić orcid.org/0009-0002-8142-6945 ; Zagreb School of Business, Zagreb, Croatia

Abstract

Friedrich Hayek was a staunch advocate of the free market principle. He was convinced that progressive taxation was a great threat to individual liberty and social fairness, particularly because there is no limit how high a progressive rate can be in it. The only explanation by which a progressive taxation can be defended is a wish to alter the income distribution, but this approach cannot be explained by any scientific argument. Progressive taxation is unjust and short-sighted while, according to Hayek, a proportional tax system satisfies a standard of fairness and justice because it applies the same general rule to all and prevents discrimination against the well-off taxpayers.

Keywords

redistribution; fiscal system; tax policy; Friedrich Hayek

Hrčak ID:

304793

URI

https://hrcak.srce.hr/304793

Publication date:

4.6.2023.

Article data in other languages: croatian

Visits: 1.281 *