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Detailed data.] On the other hand, these calculations have abstract character, as Irrespective of scales of redistribution we do not take into consideration Arising practical difficulties, its influence on level Economic activity. [Here we at all do not consider influence on volume Investments.] As a result, our problem is represented absolutely simple. We define Minimum, or the bottom level, the income - thus, value and is given us.
We know quantity of the incomes which are not reaching this level, equal And.
To us the total sum of these incomes and how much it less values of Aa is known.
That is we know size of deficiency L. Hence, to us it is known and
Desirable size of surplus S as it should be equal to deficiency L.
Now we need to find out, at what value of a ceiling of incomes h we
We can receive necessary surplus S.
Redistribution of incomes: to or after deduction of taxes?
We can achieve the object two different ways. Often it is represented,
That redistribution process comes into force to a deduction of taxes, as though in
Kind of the special tax equalising all existing incomes, which
Then are exposed to the usual taxation. But in this case the state budget
Will incur huge losses. We will consider it more in detail: from H incomes,
Exceeding a ceiling, in the budget it is kept by means of the special tax
On high incomes and the usual taxation a total sum equal T. If
High incomes to lower to level and, the treasury will receive only that gives
The taxation of the maximum incomes h. It practically will receive nothing
From this surplus of high incomes which will be redistributed in advantage
Incomes below a minimum level. These are essential losses for the budget.
Approximate calculations show that if the ceiling of incomes is equal 2
Thousand pounds, the state loses the third part on surplus redistribution
The present receipts from the taxation of incomes. If we do not want
To limit state functions, we should compensate this loss
To the budget.
There is a point of view that at new distribution of incomes will be reduced
Expenses of the state on less provided members of a society. But in the such
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