Premium
PROGRESSIVE TAXATION AS A MEANS FOR IMPROVING COMPETITIVE BALANCE
Author(s) -
Van Der Burg Tsjalle,
Prinz Aloys
Publication year - 2005
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.0036-9292.2005.00335.x
Subject(s) - league , revenue sharing , balance (ability) , salary , revenue , economics , perspective (graphical) , agency (philosophy) , microeconomics , public economics , computer science , finance , market economy , artificial intelligence , medicine , philosophy , physics , epistemology , astronomy , physical medicine and rehabilitation
The existing instruments for improving the competitive balance within a sports league, such as revenue sharing, restrictions on free agency and salary caps, all have their shortcomings. In this paper, we show that a progressive sports tax, the revenues of which are not redistributed to smaller teams in the league, could be a better instrument. From the broader perspective of the theory of optimum taxation, this instrument may have advantages as well.