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Capital Income Taxation and the Mirrlees Review

Apps, Patricia - 2012

influence future discussions of tax reform. Indeed, this can already be recognised in the Henry Review. As far as income … labour earnings. This paper argues against this direction of reform on the grounds that it is based on a model of household … appropriate direction for reform is towards more progressive taxation of both labour earnings and capital income, although not …

Persistent link: https://www.econbiz.de/10013104953

Redistribution and Insurance with Simple Tax Instruments

Findeisen, Sebastian - 2015

We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is independent of the social welfare function and...

Persistent link: https://www.econbiz.de/10013016371

Optimal Taxation with Multiple Incomes and Types

Spiritus, Kevin; Lehmann, Etienne; Renes, Sander; … - 2022

We analyze the optimal nonlinear income tax schedule when taxpayers earn multiple incomes and differ along many unobserved dimensions. We derive the necessary conditions for the government s optimum using both a tax perturbation and a mechanism design approach, and show that both methods produce...

Persistent link: https://www.econbiz.de/10014083899

Smooth Income Tax Schedules : Derivation and Consequences

Estévez Schwarz, Diana - 2018

Existing tax schedules are often overly complex and characterized by discontinuities in the marginal tax burden. In this paper we propose a class of progressive smooth functions to replace personal income tax schedules. These functions depend only on three meaningful parameters, and avoid the...

Persistent link: https://www.econbiz.de/10012919519

Optimal Piecewise Linear Income Taxation

Apps, Patricia - 2011

Given its significance in practice, piecewise linear taxation has received relatively little attention in the literature. This paper offers a simple and transparent analysis of its main characteristics. We fully characterize optimal tax parameters for the cases in which budget sets are convex...

Persistent link: https://www.econbiz.de/10013119548

Employment, Hours of Work and the Optimal Taxation of Low Income Families

Blundell, Richard W. - 2011

The optimal design of low income support is examined using a structural labour supply model. The approach incorporates unobserved heterogeneity, fixed costs of work, childcare costs and the detailed non-convexities of the tax and transfer system. The analysis considers purely Pareto improving...

Persistent link: https://www.econbiz.de/10013123920

Optimal Redistributive Taxation with Both Extensive and Intensive Responses

Jacquet, Laurence - 2010

This paper characterizes optimal income taxation when individuals respond along both the intensive and extensive margins. Individuals are heterogeneous across two dimensions: specifically, their skill and disutility of participation. Preferences over consumption and work effort can differ with...

Persistent link: https://www.econbiz.de/10013146460

A Simple Theory of Optimal Redistributive Taxation with Equilibrium Unemployment

Hungerbühler, Mathias - 2010

We propose a canonical model of optimal nonlinear redistributive taxation with matching unemployment. In our model, agents are endowed with different skill levels and labor markets are perfectly segmented by skill. The government only observes negotiated wages. More progressive taxation leads to...

Persistent link: https://www.econbiz.de/10013146465

Efficient Subsidization of Human Capital Accumulation with Overlapping Generations and Endogenous Growth

Richter, Wolfram F. - 2010

This paper studies second-best policies in an OLG model in which endogenous growth results from human capital accumulation. When young, individuals decide on education, saving, and nonqualified labour. When old, individuals supply qualified labour. Growth equilibria are inefficient in...

Persistent link: https://www.econbiz.de/10013149817

Accounting for Family Background When Designing Optimal Income Taxes : A Microeconometric Simulation Analysis

Aaberge, Rolf - 2009

The purpose of this paper is to introduce and adopt a generalised version of Roemer's (1998) Equality of Opportunity (EOp) framework, which we call extended EOp, for analysing second-best optimal income taxation. Unlike the pure EOp criterion of Roemer (1998) the extended EOp criterion allows...

Persistent link: https://www.econbiz.de/10013153308