In West Africa, the Value Added Tax (VAT) policy consists of a uniform tax rate, but several items consumed by rich and … poor households, are exempted. We provide an optimal tax framework to reflect on the welfare effects of such a tariff … consistent individual welfare measure that depends on both types of goods, is used. To determine optimal tax rates, individual …

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 … prevailing tax mix is sufficiently skewed towards wage taxation …

This paper provides necessary and sufficient conditions for the existence of Pareto-improving tax reforms. The … discuss one such application in detail: the introduction of the Earned Income Tax Credit (EITC) in the US. We find that the … EITC can be viewed as a response to an in-efficiency in the tax and transfer system prevailing at the time. This adds a new …

social welfare measure to evaluate four hypothetical earnings tax reforms for Belgian singles. The degree of compensation for …

income with respect to the net-of-tax rate, i.e., one minus the marginal tax rate. We offer new evidence on this matter by … making use of a large panel of Swedish tax payers over the period 1991-2002. Changes in statutory tax rates as well as … discretionary changes in tax bracket thresholds provide exogenous variations in tax rates that can be used to identify income …

This paper analyzes the optimal tax system consisting of the tax rate and the capacity of the tax administration. I … challenge the conventional wisdom that tax rates and tax administrations' capacity are complements showing that their … relationship depends on a country's level of development. Accordingly, developed and developing countries should set higher tax …

This paper proposes a growth-oriented dual-income tax by combining an allowance for corporate equity with a broadly … defined flat tax on personal capital income. Revenue losses are compensated by an increase in the value added tax. The paper …. Tax rates are chosen to prevent income shifting from labor to capital income. The reform decisively strengthens investment …

Tax legislation, fiscal authorities, and tax courts create tax uncertainty by frequent tax reforms and various … different interpretations of the tax law. Moreover, investors generate model-specific tax uncertainty by using simplified models … that anticipate the actual tax base incorrectly. I analyze the effects of stochastic taxation on investment behavior in a …

With (automatic) exchange of tax information among countries now common, tax evaders have had to find new ways to hide … probability that their tax evasion is detected through information exchange. Using data on cross-border bank deposits, we find … that deposits in tax havens increase after a country starts offering a citizenship-by-investment program, providing …

We analyze Pareto-efficient tax deduction rules for work-related expenses. Pareto efficiency dictates a strict rule for …. We apply our theory and simulate a Pareto-improving reform that introduces deductions for non-care household services … 55% and 85% with a slight increase in marginal tax rates …