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This paper reconsiders the classical problem of majority voting over tax schedules, adding the possibility to avoid taxes. In this setting preferences over tax schedules are not determined by earned income, but rather by taxable income, which depends on the joint decisions of labor supply and...
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This paper examines the implications of income redistribution on human capital accumulation and income inequality … intellectual ability. It is shown that the impact of redistribution is ambiguous on the income distribution as well as on human … equity in low-tax societies, it may be highly detrimental in both respects if the rate of redistribution is already moderate …
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