Governments in many developed economies provide occupational pension plans with significant taxation incentives. However, as many retirement income systems are now being reviewed due to demographic, social and economic pressures, these taxation arrangements are also under scrutiny. This paper...

A model is presented for simulating the tax burden on highly skilled manpower. The effective average tax rate, defined as the relative wedge between employment costs and disposable income, is computed. Income and payroll taxes and social security contributions not yielding an equivalent benefit...

En este trabajo se plantea una nueva alternativa para …nanciar el déficit pensional, un impuesto a las pensiones. Dada esa posibilidad, se analizan dos aproximaciones para el diseño de un sistema tributario en un esquema de reparto simple. La primera de ellas analiza el impuesto bajo...

Governments are known for procrastinating when it comes to resolving painful policy problems. Whatever the political motives for waiting to decide, procrastination distorts economic decisions relative to what would arise with early policy resolution. In so doing, it engenders excess burden. This...

The analysis provides a new explanation for two widespread problems concerning European unemployment policy: the Disappointingly small effect of many past reform measures on unemployment, and the political difficulties in implementing more extensive reform programs.

This paper presents a comprehensive view of life-time taxation including both explicit taxation through the general tax system and implicit taxation via the retirement benefit formula. Individuals are heterogeneous with respect to productivity. It is shown that the optimal structure of...

In this paper I will introduce a new political economy model, where there exists a competition amongst two political candidates, which aim to set a policy which enables them to win elections, max- imising the probability of winning. I will show that, if taxes neces- sary to repay the debt are...

This paper analyzes the dynamic politico-economic equilibrium of a model where repeated voting on social security and the evolution of household characteristics in general equilibrium are mutually affected over time. In particular, we incorporate within-cohort heterogeneity in a two-period...

This paper extends the Diamond overlapping-generations model with pay-as-you-go social security by allowing for variable retirement age and for distortionary taxation of earnings and interest income. The tax rates are shown to depend on whether or not debt policy is available, and on the...

A model is presented for simulating the level of taxes imposed on highly skilled labor. The effective average tax rate, defined as the relative wedge between employment costs and disposable income, is computed. Income and payroll taxes and social security contributions not yielding an equivalent...