In a model where a continuum of individuals have preferences for consumption and leisure as follows
w^{i} = c^{i} + ln(x^{i})
and individuals differ in their labour endowments ei, suppose two candidates run for office and offer a platform of imposing a proportional tax rate τ to finance lump sum transfers uniformly to all the population.
Where the planner maximizes the average individual's welfare. Are taxes higher or lower at the median voter solution? Why?