Baake, Pio; Borck, Rainald; Löffler, Andreas - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004
functions, we show that work-related expenditures should be fully deductible in the first case while deduction rates should be … first case (called a complex tax system) the tax authorities can exactly distinguish between consumptive and work-related … expenditures. In the second case (called a simple tax system) this distinction is not exact. Assuming additively separable utility …