Jacobs, Bas; Thuemmel, Uwe - 2020
). SBTC affects optimal taxes and subsidies by changing i) direct distributional benefits, ii) indirect redistributional … distributional losses, and it increases education distortions. Also, SBTC lowers optimal education subsidies, since SBTC generates … larger direct distributional losses of education subsidies, which more than offset their larger indirect distributional gains …