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
From each according to his ability, to each according to his needs complete paragraph containing Marx's statement of the creed in the "Critique of the Gotha Program" is as follows: Although Marx is popularly thought of as the originator of the phrase, the slogan was common within the socialist movement. For example, it was used by August Becker in 1844 and Louis Blanc in 1851. The origin of this phrasing has also been attributed to the French utopian Étienne-Gabriel Morelly, who proposed in his 1755 "Code of Nature" "Sacred and Fundamental Laws that would tear out the roots of vice and of all the evils of a society", including: A similar phrase