This paper proposes a new framework to study the distribution of taxes and the effects of tax reforms, connecting … classical tax incidence analysis to optimal tax theory. To study the distribution of current taxes, labor taxes are assigned to … the corresponding workers, capital taxes to the corresponding asset owners, and consumption taxes to consumers. The tax …

Higher corporate taxes reduce corporate business operations, replacing them with operations by noncorporate businesses … higher corporate taxes can increase income inequality even when the corporate tax burden falls entirely on capital owned …

income groups. Previous time series studies of tax returns data have found little evidence for income responses to taxes …

gains from inducing a more gradual transition via temporary taxes on trade and technology, and provide formulas for the … optimal path for taxes. Our formulas account for the possibility that reallocation effort responds to policy, and for the … existence of income taxes and assistance programs. Using these formulas, we compute the optimal temporary taxes needed to …