tax schemes that alleviate poverty. To avoid conflict with individual well-being, we require redistribution to take place … yields the following evaluation criterion: tax schemes should minimize the labor time required to reach the poverty line. We …

first backward bending and then vertical. This can justify an optimal marginal tax rate on top incomes equal to 100 percent …

provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is … capital tax is non-zero and trades off redistribution and insurance against savings distortions. Our quantitative results … reveal that the insurance component contributes significantly to optimal labor tax rates and provides an informative lower …

Ramsey government achieves efficient labor market volatility; doing so requires labor-income tax volatility that is orders of … magnitude larger than the "tax-smoothing" results based on Walrasian labor markets, but a few times smaller than the results … order to understand optimal tax volatility. …

In a unionised labour market, a substitution of a payroll for an income tax will not alter employment if tax … especially be the case if the fine for tax evasion depends on undeclared income or on wage payments or if withholding regulations … prevent optimal evasion choices. In such instances, tax evasion opportunities make the legal incidence of taxes an important …

Italy is employed to simulate and identify income tax-transfer rules that are optimal according to the extended EOp … criterion. We look for second-best optimality, i.e. the tax-transfer rules are not allowed to depend on family background, they … individualized) lump-sum transfer (positive or negative) and by one or two marginal tax rates. A rather striking result of the …

' well-being. For identification, we exploit exogenous variation in tax rules over time and across demographic groups using … 26 years of German panel data. We find that the tax effect on subjective well-being is significant and positive when … several possible channels through which taxes affect welfare including public goods, insurance, redistributive taste and tax …

In this paper we argue that, for a given overall level of labour income taxation, a more progressive tax schedule … suggest that a more progressive tax schedule reduces the unemployment rate and increases the employment rate. These findings … results suggest that policy-makers should not only focus on the detrimental effects of tax progressivity on in-work effort …

What are the impacts of labor tax reform on wage setting and employment to keep the relative tax burden per low …-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by … raising the wage tax and the tax exemption for the low-skilled workers will decrease the wage rate and increase labour demand …