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Unlike proportionality, progression provides no principle which tells us what the relative burden of different persons ought to be the argument based on the presumed justice of progression provides no limitation, as has often been admitted by its supporters, before all incomes above a certain figure are confiscated, and those below left untaxed.

Friedrich Hayek#162

Attribution disputed; shown as originally published.

EconomicsPolicyJusticeTaxation

About this quote

What does it mean?
Progressive taxation lacks a clear principle, potentially leading to confiscation of wealth above thresholds.
In plain terms
Taxing higher incomes progressively has no clear limit and could take everything.
What can you take from it?
Tax policies need defined boundaries.

Where it applies

  • fiscal policy
  • wealth distribution

Putting it to work

  • set tax caps

Questions to consider

  • Where should taxes stop?
  • Is fairness more important than limits?

Another view

Progressive tax funds public services.

More from Friedrich Hayek

  1. To be controlled in our economic pursuits means to be... controlled in everything.

    Permalink to quote #161
  2. What a free society offers to the individual is much more than what he would be able to do if only he were free.

    Permalink to quote #163
  3. There is, in a competitive society, nobody who can exercise even a fraction of the power which a socialist planning board would possess.

    Permalink to quote #160

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