noun
optimal taxation; optimum taxation
Technical term in public economics referring to the design of a tax system that maximizes social welfare given certain constraints.
最適課税の理論は、税制の効率性と公平性のバランスを分析する。
The theory of optimal taxation analyzes the balance between efficiency and equity in a tax system.
Compound of 最適 (saiteki, 'optimal') and 課税 (kazei, 'taxation').