Seit dem Jahr 2016 wurde der Einkommensteuertarif jährlich an die Inflation angepasst, um die sonst automatisch steigende durchschnittliche Belastung der Einkommen - die "kalte Progression" - auszugleichen. Zu diesem Zweck wurden Grundfreibetrag und Tarifeckwerte verschoben, sodass die...

Seit dem Jahr 2016 wurde der Einkommensteuertarif jährlich an die Inflation angepasst, um die sonst automatisch steigende durchschnittliche Belastung der Einkommen - die "kalte Progression" - auszugleichen. Zu diesem Zweck wurden Grundfreibetrag und Tarifeckwerte verschoben, sodass die...

This paper studies the aggregate and distributional effects of raising the top marginal income tax rate in the presence of tax avoidance. To this end, we develop a quantitative macroeconomic model with heterogeneous agents and occupational choice in which entrepreneurs can avoid taxes in two...

We examine individuals’ responsiveness to marginal tax rates using the universe of Australian taxpayer records from 2000 to 2018. Unlike studies from other countries, we find sharp bunching at all kink points. The estimated Elasticities of Taxable Income (ETI) range from effectively zero for...

Background: The article evaluates the influence of the type of nominal personal income tax rate on its progressivity. This is examined in the Czech Republic in the period 1993-2020. Between 1993 and 2007, the nominal tax rate was progressive, while from 2008 until the end of 2020, the nominal...

This paper characterizes the optimal taxation of top earners in a world with externalities. It takes a reduced-form approach that spans a broad class of models where top earners create externalities on the economy. The model allows for a flexible relationship between top earnings and the...

Der Bericht untersucht unter Verwendung von Haushaltsbefragungsdaten (SOEP) und dem Mikrosimulationsmodell des RWI EMSIM die Verteilungswirkung einer aufkommensneutralen Einführung eines bedingungslosen Grundeinkommens bei gleichzeitigem Wegfall ausgewählter Sozialleistungen und einer...

This paper examines the impact of the Alternative Minimum Tax on the weighted average marginal tax rates that apply to various components of taxable income. It also considers the impact of several AMT reform proposals on the number of AMT taxpayers, the total revenue collected from the AMT, and...

The economic effects of taxation depend on the configuration of marginal tax rates. We consider here the appropriate measure of a marginal tax rate for the federal individual income tax, which has a graduated-rate structure and allows for numerous legal and illegal deductions from total...

Using 2.21 million units of data from the National Bureau of Statistics’ China Industrial Enterprises Database, during 1998-2013, we adopt the static panel model and the dynamic panel model to more accurately examine the impact of changes in corporate income tax rates on employment. The...

Half of the jobs in the U.S. feature pay-for-performance. We derive novel incidence and optimum formulas for the overall rate of tax progressivity and the top tax rates on total earnings and bonuses, when such labor contracts arise from moral hazard frictions within firms. Optimal taxes account...

Personal Income Tax (PIT) is one of the key sources of revenues in Advanced Economies (AEs) but plays a much more limited role in Low-Income Developing Countries (LIDCs) and Emerging Market Economies (EMEs), both in terms of revenue and redistributive impact. Notwithstanding, this paper shows...

We study the optimal income tax problem when policymakers have only limited information about household preferences and wage process. To this end, we build an incomplete-market life-cycle model of heterogeneous households and measure uncertainty about preference and wage parameters through...

We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...

With more and more of the UK’s wealthiest individuals relocating to overseas tax havens to avoid the UK’s residence-based personal income tax, the need to address this specific form of tax avoidance is pressing. This article argues for the adoption of Continental-style conditional...

This paper develops a model of Tiebout sorting with decentrally determined progressive income taxation and a built-in fiscal equalization scheme that redistributes money from richer to poorer regions. Both aspects are central to policy makers: the progressivity for equity reasons and the fiscal...

Half of the jobs in the U.S. feature pay-for-performance. We derive novel incidence and optimum formulas for the overall rate of tax progressivity and the top tax rates on total earnings and bonuses, when such labor contracts arise from moral hazard frictions within firms. Optimal taxes account...

This paper begins with a survey of the literature on the political economy approaches to labor income taxation. We focus on recent progress made by examining in detail the specific properties of non-linear taxes derived in the context of voting. Next, we present new results on the existence of...

We study the joint design of nonlinear income and education taxes when the government pursues redistributive objectives. A key feature of our setup is that the ability type of an agent can affect both the costs and benefits of acquiring education. Market remuneration of agents depends on both...

Der Bericht untersucht unter Verwendung von Haushaltsbefragungsdaten (SOEP) und dem Mikrosimulationsmodell des RWI EMSIM die Verteilungswirkung einer aufkommensneutralen Einführung eines bedingungslosen Grundeinkommens bei gleichzeitigem Wegfall ausgewählter Sozialleistungen und einer...

Die Kalte Progression führt einerseits dazu, dass real konstante Einkommen mit der Zeit in höhere Regionen des Einkommensteuertarifs rutschen und stärker belastet werden sowie anderseits die gesamtwirtschaftliche Steuerquote (Steuereinnahmen als Anteil am Bruttoinlandsprodukt) automatisch...

Personal Income Tax (PIT) is one of the key sources of revenues in Advanced Economies (AEs) but plays a much more limited role in Low-Income Developing Countries (LIDCs) and Emerging Market Economies (EMEs), both in terms of revenue and redistributive impact. Notwithstanding, this paper shows...

Der aktuelle Einkommensteuertarif belastet Mittelschichten und Besserverdienende relativ stark durch den schnellen Anstieg der Progression. Entlastungen durch eine Anhebung des Grundfreibetrags oder eine Abmagerung des Mittelstandsbauchs führen leicht zu Steuerausfällen von höheren...

Der aktuelle Einkommensteuertarif belastet Mittelschichten und Besserverdienende relativ stark durch den schnellen Anstieg der Progression. Entlastungen durch eine Anhebung des Grundfreibetrags oder eine Abmagerung des Mittelstandsbauchs führen leicht zu Steuerausfällen von höheren...

Deaton (1979) showed that if preferences are weakly separable in goods and labour and quasihomothetic in goods and the government imposes an optimal linear progressive tax, commodity taxes are redundant. Hellwig (2009) generalized the Deaton theorem by showing that the allocation obtained under...