Jacobs, Bas; Boadway, Robin - CESifo - 2013
This paper analyzes optimal linear commodity taxes joint with non-linear income taxes. We provide optimal tax rules …. In addition, we extend the standard formula for optimal non-linear income taxation for the presence of optimal linear … Atkinson and Stiglitz (1976, 1980) apply as well to linear tax commodity taxes. We show that the optimal second-best allocation …