Optimal income tax and redistribution

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August undefined, 2024

WebLinear income tax is the simplest redistributive programme that the government is likely to consider employing. In the linear income tax system, the tax is characterized by a lump-sum income or a basic income paid to each individual and a proportional tax on each euro earned at a rate t (the flat rate). WebAug 30, 2024 · [Show full abstract] proposed approach, the optimal tax should have no commodity tax for some range of consumptions, and income redistribution would feature high subsidies to the working poor. It ...

Optimal Tax-Transfer Systems and Redistributive Policy - JSTOR

WebSelect search scope, currently: articles+ all catalog, articles, website, & more in one search; catalog books, media & more in the Stanford Libraries' collections; articles+ journal articles & other e-resources WebJun 15, 2015 · The best possible policy combining a flat tax system (in which everyone pays the same tax rate, regardless of income) with universal, identical lump-sum … high profile malware attack

Inequality and Optimal Redistribution - Cambridge Core

WebOptimal Labor Income Taxation Book PDFs/Epub. ... we use the simplest possible models and show how optimal tax formulas can be derived and expressed in terms of sufficient statistics that include social marginal welfare weights capturing society's value for redistribution, behavioral elasticities capturing the efficiency costs of taxation, as ... WebSep 1, 2024 · Abstract This paper studies an optimal linear tax or basic income regime with an extensive margin in the supply of labor and a utililitarian welfare criterion. The presence the extensive... WebNov 9, 2024 · Optimal income tax and redistribution by Matti Tuomala, 1990, Clarendon Press, Oxford University Press edition, in English Optimal income tax and redistribution … high profile monthly

Optimal Capital Income Taxation and Redistribution - JSTOR

The Democratic State and Redistribution: Whose Interests Are …

WebOptimal income tax rates are shaped by the tradeoff between redistribution and economic distortion. The dominant framework for evaluating this tradeoff and deriving optimal income tax formulas assumes that agents are distributed across “smooth” hours or income choice problems indexed by an agent's preference or productivity type. WebThe costs associated with badly designed and badly administered personal income tax systems likely exceed the costs associated with other taxes. There are opportunity costs as well. Third, given the ineffectiveness of the personal income tax, if countries want to use the fiscal system to reduce poverty or reduce inequality, alternative ... how many books in the new testament kjvWebWe also characterize the optimal tax schedule. Our simulation analysis shows that the optimal non-linear income tax we obtain is similar to the US one and imposes less redistribution than utilitarianism (the standard criterion for optimal income taxation). Finally, we generalize the results to heterogeneous preference and poverty. high profile models

"WebOct 6, 2024 · First, and echoing Chris’ post from last week, the CBO shows that total annual federal taxes — income, payroll, corporate, and excise — paid by the richest Americans (households making around... " - Optimal income tax and redistribution

Optimal income tax and redistribution

Ramsey Strikes Back: Optimal Commodity Taxes and Redistribution ... - NBER

WebWe then put forward eight general lessons suggested by optimal tax theory as it has developed in recent decades: 1) Optimal marginal tax rate schedules depend on the … Webunits were given the same post-tax income (i.e., it uses perfect redistribution, with zero net budget, as a reference). By confining attention to the class of ... Let Yo be post-tax income under the optimal tax policy and let Yg be post-tax income under an arbitrary tax policy. Assume that E(YO) = E(Yg) and denote as above the correspond- ...

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WebDec 9, 2024 · According to a famous formula (due I believe to Saez), the optimal maximum tax rate τ ∗ is given by τ ∗ = 1 − g ¯ 1 − g ¯ + a e where g is the 'average social marginal welfare weight', a measures the thickness of the tail of the income distribution, and e is the elasticity of aggregate income with respect to the net of tax rate. WebMar 14, 2016 · Tax systems raise large amounts of revenue for funding public sector's activities, and tax/transfer policy, together with public provision of education, health care, …

Webendogenous measure of post-tax-and-transfer income inequality. Their work was inspired by and drew on both the extensive empirical literature measuring inequality and a theoretical … WebOptimal Capital Income Taxation and Redistribution Ulrike Vogelgesang* This paper studies the effects of agent heterogeneity on optimal capital income taxation. We discuss …

WebIn terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich: there is an inverse relationship between the tax … WebWe ﬁnd that a uniform ﬂat tax on capital and labor income combined with a lump-sum transfer is nearly optimal. Though allowing for increasing marginal income and wealth taxes raises welfare, the incremental gains are small due to strong behavioral and general equilibrium eﬀects.

Webcapital income taxes. However, there are a few initial periods (their number depending on a possible upper bound on tax rates) in which the optimal cap-ital income tax is strictly positive, declining to zero afterwards. The main effect of initially high levels of capital income taxes is to extract the endow-ments from the consumers.

WebDescription: The benchmark optimal income taxation model of Mirrlees (1971) finds that the optimal marginal income tax rate (MIT) is always non-negative. A key model assumption is the coincidence between social and individual work preferences. This paper extends the model to allow for differences in social and individual work preferences. how many books in the niv bibleWebThe standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a … how many books in the new testament christianWebJul 2, 2004 · On this understanding, we can determine whether redistribution has taken place by identifying (1) a pattern of holdings at time t1 that characterizes the initial distribution; (2) a pattern of holdings at time t2 that characterizes the later distribution; and (3) some policy or other social mechanism that, intentionally or not, caused the change … how many books in the old and new testamentWebMar 14, 2024 · Some of the basic features of redistribution can be explained through the optimal tax framework developed by J. A. Mirrlees in 1971. This Element surveys some of … high profile metal bed frameWebJSTOR Home how many books in the new testament nivWebAug 18, 2016 · Important contributions to the optimal income tax literature include Mirrlees (1971), Sheshinski (1972), Sadka (1976), Stem (1976), and Feldstein (1973). 5. This is one of the themes in Feldstein (1973). ... Equation (7) can be used to determine the level of earnings at which redistribution leaves disposable income unchanged by setting dY i ... high profile nanny jobs australiaWebOne of our early results that received a great deal of attention was that when there was separability in the utility function between consumption and leisure,1if there existed an optimal income tax, it was optimal to have no commodity taxation … how many books in the orthodox bible