The Justness of Taxation

work by Lindahl

Also known as: “Die Gerechtigkeit der Besteuerung”

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July 16, 2026

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Erik Robert Lindahl, a Swedish economist, developed the benefit principle in taxation, as detailed in his work Die Gerechtigkeit der Besteuerung ("The Justness of Taxation"). This principle posits that individuals should contribute to government-provided goods and services in proportion to the benefits they receive. Lindahl argued that this approach is not only just but also leads to optimal levels of government provision.1

This principle aligns with one of the leading views on tax fairness, which suggests an equivalence between what an individual pays in taxes and the benefits they receive from government activities. Lindahl was part of the Stockholm school of economics and also contributed to the theory of money and capital.21

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Erik Robert Lindahl
…Die Gerechtigkeit der Besteuerung (1919; “The Justness of Taxation”). That principle holds that each person’s share of taxes paid for government-provided goods and services should equal the share of benefits each person receives. Lindahl argued that not only would such a payment scale be just and fair, but it would…
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…Die Gerechtigkeit der Besteuerung (1919; “The Justness of Taxation”). That principle holds that each person’s share of taxes paid for government-provided goods and services should equal the share of benefits each person receives. Lindahl argued that not only would such a payment scale be just and fair, but it would…
Read More