Explain the law of diminishing marginal utility

Reference no: EM132181643

Question: Adam Smith stated that taxes should involve taxpayers in equality of sacrifice. Progressive taxes are related to the ability to pay, so that people on higher incomes pay a higher percentage rate of tax on each additional pound earned than do those on lower incomes. In what way does the law of diminishing marginal utility provide a justification for the use of progressive taxes?

Reference no: EM132181643

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