| Issue |
EPL
Volume 119, Number 4, August 2017
|
|
|---|---|---|
| Article Number | 40007 | |
| Number of page(s) | 5 | |
| Section | General | |
| DOI | https://doi.org/10.1209/0295-5075/119/40007 | |
| Published online | 08 November 2017 | |
Rich or poor: Who should pay higher tax rates?
Universidade Federal da Integração Latino Americana - Foz do Iguaçu PR, Brasil and Instituto de Física, Universidade Federal Fluminense - Niterói RJ, Brasil
(a) pmco@if.uff.br
oliveira.paulomurilo@gmail.com
Received: 8 August 2017
Accepted: 14 October 2017
A dynamic agent model is introduced with an annual random wealth multiplicative process followed by taxes paid according to a linear wealth-dependent tax rate. If poor agents pay higher tax rates than rich agents, eventually all wealth becomes concentrated in the hands of a single agent. By contrast, if poor agents are subject to lower tax rates, the economic collective process continues forever.
PACS: 05.70.Jk – Critical point phenomena / 89.65.Ef – Social organizations; anthropology / 89.75.Da – Systems obeying scaling laws
© EPLA, 2017
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