Optimal nonlinear taxation of income and savings is considered in a two-period model with two individuals who have additively separable preferences and who only differ in their skill levels. When the government can commit to its second period policy, taxes on savings do not form part of the...

We consider an environment in which a government implements a sequence of tax mechanisms that assign allocations to a population of privately informed agents. These mechanisms are determined by a process of electoral competition with agents voting over political candidate-mechanism pairs in each...