Guner, Nezih; Lopez-Daneri, Martin; Ventura, Gustavo - 2014
-cycle economy with heterogeneity and endogenous labor supply. Households face a progressive income tax schedule, mimicking the … Federal Income tax, and flat-rate taxes that capture payroll, state and local taxes and the corporate income tax. We … income for top earners. We find that a tilt of the Federal income tax schedule towards high earners leads to small increases …