He, Hui (contributor); Liu, Zheng (contributor) - 2006
policy is to raise the progressive-
ness of labor income taxes, and the other is to provide subsidies for human-capital … capital investment. The reduction in total
cost is thus less than the reduction in the beneflt, and skill accumulation is … investment.
Increasing the progressiveness of labor taxes, although mechanically reduces the after-tax skill
premium, is not …