Conesa, Juan Carlos (contributor); Krueger, Dirk (contributor) - 2005
criterion we find that the optimal US income tax
is well approximated by a flat tax rate of 17:2% and a fixed deduction of … proceed as follows. First, we …x the pro-
portional consumption tax rate to ¿c = 5:2%; which is the consumption tax rate found …
No. 2005/10
On the Optimal Progressivity
of the Income Tax Code
Juan Carlo Conesa and Dirk Krueger …