moving from joint taxation to individual taxation and adapting child benefits so as to keep fertility constant entails a … income tax, while the child benefit may move in either direction. Similarly, a move from joint taxation to some scheme of … family tax splitting increases labor supply and welfare. …

This paper analyses the implications of a currently publicly debated issue, namely the introduction of a bonus tax. We … shed light on the effects of the bonus tax on compensation components and study its incidence. We use the Principal Agent … based compensation component always rises in the country introducing the tax such that the optimal contracts are tilted …

Using a calibrated overlapping generations model we quantify the welfare gains of an age dependent income tax. Agents … switching from an age-independent to an age-dependent nonlinear tax amounts in our benchmark model to around three percent of … opposed to a linear tax are even larger. Surprisingly, it is of secondary importance to optimally choose the tax on interest …

The German Income Tax Reform 2000, which announced a reduction in income tax rates to be implemented in a series of … Income Tax Reform should be brought forward. The present paper assesses the welfare and macroeconomic consequences of the … German Income Tax Reform in the scope of a simplified DGE model of the Auerbach-Kotlikoff type and deals explicitly with the …

This paper analyses the switch to an ACE or to a CBIT type of tax system starting from the present German tax system …. We show that in case an ACE type of reform is financed by an increase in the VAT and not in the profit tax, it might be … preferred to a CBIT even in the context of an open economy. Moreover, the required exogenous increase in the profit tax rate …

Previous literature concludes that replacing wage taxation by taxes on a fixed factor or its rents benefits future … show that taxation of rents may also increase utility of the current generation provided tax revenues are earmarked to … reduce wage taxes. In particular, a shift in the tax mix may yield an intergenerational Pareto-improvement when the initially …

risk diversification across working-life wages in computing benefits. …

that, relative to the other tax reforms, capital tax cuts lead to the highest aggregate welfare but are skill-biased and … labour, falls in the capital tax can result in welfare losses for unskilled workers, even in the absence of other frictions … show that including the transition period in the welfare evaluation lowers the inequality effects of capital tax reduc …