A note on the existence of progressive tax structures

 This paper studies the possibility of progressive income taxation of heterogeneous populations. While a result due to Moyes and Shorrocks (1994) indicates that there does not exist a universally inequality-reducing tax structure which distinguishes between at least two subpopulations (in the sense of applying a different tax function to each subclass), it is shown here that a minimal refinement of the universality of inequality reduction leads one to a possibility conclusion. Informally stated, we prove the existence of uncountably many differentiated tax structures which are strictly progressive almost everywhere. Received: 14 March 1995/Accepted: 20 April 1996