Cremer, Helmuth; Dellis, Arnaud; Pestieau, Pierre - In: Journal of Population Economics 16 (2003) 1, pp. 37-54
This paper studies the role of family size in the design of optimal income taxation. We consider a second best setting … demogrant and family size appears to be ambiguous. With two ability levels, optimal non-linear income tax implies zero marginal … tax rates for the higher ability parents; low ability parents have positive marginal tax rates that decrease with family …