Taxing Top Earners: A Human Capital Perspective

We analyze the Diamond-Saez policy recommendation within a human capital model. We calculate the steady-state welfare implications of raising the marginal income tax rate on top incomes from current levels to those in the range of 54 percent to 80 percent. We also calculate the transitional dynamics implied by such a modification of the US tax system.

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Year of publication:	2013
Authors:	Huggett, Mark ; Badel, Alejandro
Institutions:	Society for Economic Dynamics - SED

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Series:	2013 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2013 SED Meeting Papers Number 625
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010722857