Revenue-Maximising Tax Rates in Personal Income Taxation in the Presence of Consumption Taxes: A note

This note computes revenue-maximising tax rates in personal income taxes in the presence of consumption taxes. It finds that the traditional Laffer analysis, which neglects the effects of marginal tax rates on consumption, overestimates the magnitude of revenue-maximising tax rates. The bias caused by this oversight is computed.

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Year of publication:	2015
Authors:	Sanz-Sanz, José Félix
Institutions:	Victoria Business School, Victoria University of Wellington
Subject:	Marginal tax rates \| Laffer curve \| Consumption taxes \| Tax revenue \| Tax behaviour

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Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 06/2015 Number 4272
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011265504