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Utilitarianism and Horizontal Equity : The Case for Random Taxation

Stiglitz, Joseph E. - 1981

This paper establishes that, far from being able to derive the principle of horizontal equity from utilitarianism, the … principle is actually in- consistent with utilitarianism in a variety of circumstances. We derive conditions under which (a) it … principle of horizontal equity may be inconsistent not only with utilitarianism but even with Pareto optimality …

Persistent link: https://www.econbiz.de/10012478424

Spreading the Wealth Around : Reflections Inspired by Joe the Plumber

Mankiw, N. Gregory - 2010

This essay discusses the policy debate concerning optimal taxation and the distribution of income. It begins with a brief overview of trends in income inequality, the leading hypothesis to explain these trends, and the distribution of the tax burden. It then considers the framework that...

Persistent link: https://www.econbiz.de/10012462806

Fair and Efficient Taxation Under Partial Control : Theory and Evidence

Ooghe, Erwin - 2011

There is clear evidence that fairness plays a role in redistribution. Individuals want to compensate others for their misfortune, while they allow them to enjoy the fruits of their effort. This paper introduces fairness in a tax-benefit scheme that is based on several characteristics in order to...

Persistent link: https://www.econbiz.de/10013122256

Why Countries Compete in Ad Valorem Instead of Unit Capital Taxes

Hoffmann, Magnus - 2012

This paper contributes to resolving the puzzle that in practice most countries use ad valorem (corporate income) taxation, while a large part of the tax competition literature views business taxes as unit (wealth) taxation. We point to the dual role corporate taxation plays in attracting mobile...

Persistent link: https://www.econbiz.de/10013101679

International Tax Competition : Zero Tax Rate at the Top Re-Established

Blumkin, Tomer - 2012

In this paper we extend the zero tax at the top result obtained in the closed economy case with bounded skill distributions for the case of unbounded skill distributions in the presence of international labor mobility and tax competition. We show that in the equilibrium for the tax competition...

Persistent link: https://www.econbiz.de/10013106127

Optimal Linear Commodity Taxation Under Optimal Non-Linear Income Taxation

Jacobs, Bas - 2013

This paper analyzes optimal linear commodity taxes joint with non-linear income taxes. We provide optimal tax rules based on empirically observable elasticities. We demonstrate that commodities should be taxed/subsidized if doing so boosts labor supply. The critical role of commodity taxation is...

Persistent link: https://www.econbiz.de/10013085745

The Political Economy of Taxation : Power, Structure, Redistribution

Winer, Stanley L. - 2017

In this chapter I provide an overview of the political economy of taxation in democratic states by considering the three most important issues in the field: (1) the evolution of the power to tax in (what are now) the mature constitutional democracies; (2) the nature and determinants of modern...

Persistent link: https://www.econbiz.de/10012964375

Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium

Sachs, Dominik - 2016

We study the incidence and the optimal design of nonlinear income taxes in a Mirrleesian economy with a continuum of endogenous wages. We characterize analytically the incidence of any tax reform by showing that one can mathematically formalize this problem as an integral equation. For a CES...

Persistent link: https://www.econbiz.de/10012979663

Optimal Income Taxation when Skills and Behavioral Elasticites are Heterogeneous

Jacquet, Laurence - 2015

We solve a large class of multidimensional adverse selection problems with one observed action, to derive the nonlinear optimal income tax schedule when individuals differ along multiple unobserved characteristics. Based on a perturbation of the optimal allocation, our method allows individuals...

Persistent link: https://www.econbiz.de/10013024689

Social Versus Individual Work Preferences : Implications for Optimal Income Taxation

An, Zhiyong; Coady, David P. - 2022

The benchmark optimal income taxation model of Mirrlees (1971) finds that the optimal marginal income tax rate (MIT) is always non-negative. A key model assumption is the coincidence between social and individual work preferences. This paper extends the model to allow for differences in social...

Persistent link: https://www.econbiz.de/10013291762