Forced rider

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A forced rider in economics is a person who is required, by public or private entities, to share in the costs of goods or services without desiring them or valuing them at their price.

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Theory

Forced riders in taxation

The forced rider has been cited in various authors' views concerning taxation.

Forced riders in private property

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Related Research Articles

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Abood v. Detroit Board of Education, 431 U.S. 209 (1977), was a US labor law case where the United States Supreme Court upheld the maintaining of a union shop in a public workplace. Public school teachers in Detroit had sought to overturn the requirement that they pay fees equivalent to union dues on the grounds that they opposed public sector collective bargaining and objected to the political activities of the union. In a unanimous decision, the Court affirmed that the union shop, legal in the private sector, is also legal in the public sector. They found that non-members may be assessed agency fees to recover the costs of "collective bargaining, contract administration, and grievance adjustment purposes" while insisting that objectors to union membership or policy may not have their dues used for other ideological or political purposes.

The benefit principle is a concept in the theory of taxation from public finance. It bases taxes to pay for public-goods expenditures on a politically-revealed willingness to pay for benefits received. The principle is sometimes likened to the function of prices in allocating private goods. In its use for assessing the efficiency of taxes and appraising fiscal policy, the benefit approach was initially developed by Knut Wicksell (1896) and Erik Lindahl (1919), two economists of the Stockholm School. Wicksell's near-unanimity formulation of the principle was premised on a just income distribution. The approach was extended in the work of Paul Samuelson, Richard Musgrave, and others. It has also been applied to such subjects as tax progressivity, corporation taxes, and taxes on property or wealth. The unanimity-rule aspect of Wicksell's approach in linking taxes and expenditures is cited as a point of departure for the study of constitutional economics in the work of James Buchanan.

Friedrichs v. California Teachers Association, 578 U.S. ___ (2016), is a United States labor law case that came before the Supreme Court of the United States. At issue in the case was whether Abood v. Detroit Board of Education (1977) should be overruled, with public-sector "agency shop" arrangements invalidated under the First Amendment, and whether it violates the First Amendment to require that public employees affirmatively object to subsidizing nonchargeable speech by public-sector unions, rather than requiring employees to consent affirmatively to subsidizing such speech. Specifically, the case concerned public sector collective bargaining by the California Teachers Association, an affiliate of the National Education Association.

Janus v. American Federation of State, County, and Municipal Employees, Council 31, No. 16-1466, 585 U.S. ___ (2018), abbreviated Janus v. AFSCME, is a landmark decision of the US Supreme Court on US labor law, concerning the power of labor unions to collect fees from non-union members. Under the Taft–Hartley Act of 1947, which applies to the private sector, union security agreements can be allowed by state law. The Supreme Court ruled that such union fees in the public sector violate the First Amendment right to free speech, overruling the 1977 decision in Abood v. Detroit Board of Education that had previously allowed such fees.

References

  1. 1 2 "The Myth of Neutral Taxation" (PDF). Retrieved November 30, 2013.
  2. Richard Cornes Todd Sandler (July 1, 1994). "Are Public Goods Myths?". Jtp.sagepub.com. Retrieved November 30, 2013.
  3. Cowen, Tyler; Tabarrok, Alex (October 9, 2009). Modern Principles of Economics. ISBN   9781429202275 . Retrieved November 30, 2013.
  4. Gary Galles (July 1, 1994). "Union Dues and the "Free Rider" Problem". mises.org. Retrieved August 11, 2019.