The optimal taxation of height: A case study of utilitarian income redistribution

Abstract

Should the income tax include a credit for short taxpayers and a\n\nsurcharge for tall ones? The standard utilitarian framework for tax\n\nanalysis answers this question in the affirmative. Moreover, a plausible\n\nparameterization using data on height and wages implies a substantial\n\nheight tax: a tall person earning 50,000 should pay 4,500\n\nmore in tax than a short person. One interpretation is that personal\n\nattributes correlated with wages should be considered more widely\n\nfor determining taxes. Alternatively, if policies such as a height\ntax\n\nare rejected, then the standard utilitarian framework must fail to\n\ncapture intuitive notions of distributive justice.