Optimum Taxation of Each Year's Income
In this paper, a two-type, two-period model of optimum income taxation is investigated. I assume full commitment and that current income determines the agents' tax burden in each period. It is shown that such a tax system does not allow one to implement the optimal long-term tax contract and that it implies positive marginal tax rates at the upper end of the income distribution. Copyright 2007 Blackwell Publishing, Inc..
Year of publication: |
2007
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Authors: | GAUBE, THOMAS |
Published in: |
Journal of Public Economic Theory. - Association for Public Economic Theory - APET, ISSN 1097-3923. - Vol. 9.2007, 1, p. 127-150
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Publisher: |
Association for Public Economic Theory - APET |
Saved in:
freely available
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