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. …

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 …

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 …

that in the presence of wage taxation, a small bequest tax may improve efficiency in an overlapping-generations framework … even if the wage tax rate is held constant when introducing bequest taxation. We also calculate an optimal mix of wage and … bequest taxes with alternative parameter combinations. In all cases, the optimal wage tax rate is clearly higher than the …

be efficient to supplement a consumption tax with positive incentives for education. If the return from education is … shown to be second-best efficient. In particular, any tax distortions should be constrained to labour choices while the …

by offering some workers "secondary contracts". When calibrated using aggregate tax revenue data, the model delivers … investigate the fiscal and welfare effects of varying the avoidable and unavoidable shares of labor income tax while keeping the … labor tax evasion makes tax revenues more elastic, but full tax compliance need not be a welfare enhancing policy mix. …