Optimal tax in his article titled "Using Elasticities to Derive Optimal Income Tax Rates" derives a formula for optimal level of income tax using the both compensated and uncompensated elasticities. Saez writes the tradeoff between equity and efficiency is a central consideration of optimal taxation, and implementing a progressive tax allows the government to reallocate their resources where they are needed most. However, this deters those of higher income levels to work at their optimal level. Saez decomposes the marginal effects of a tax change into mechanical, behavioural and welfare effects, as follows: The sum of these effects should be zero at
To each according to his contribution that the citizens of a workers' society should be rewarded according to individual contributions, Marx claims that giving them the "full product" of their labor is impossible as some of the proceeds will be needed to maintain infrastructure and so forth. He then explains the nature of a communist society in its lower phase ("socialist society"), which does not emerge from its own foundations "but, on the contrary, just as it emerges from capitalist society; which is thus in every respect, economically, morally, and intellectually, still stamped with the birthmarks of the old society from whose womb it emerges". And