Question: Peter the Great at one time levied a tax upon beards. He held that the beard was a superfluous and useless ornament. The tax is

“Peter the Great at one time levied a tax upon beards. He held that the beard was a superfluous and useless ornament. The tax is said to have been proportional according to the length of the beard and progressive according to the social position of its possessor” [Groves, 1946, p. 51]. Evaluate Peter’s beard tax from the standpoint of optimal tax theory and from the standpoint of horizontal equity.

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