This paper computes the optimal progressivity of the income tax code in a dynamic general equilibrium model with …. A progressive tax system serves as a partial substitute for missing insurance markets and enhances an equal distribution … of economic welfare. These beneficial effects of a progressive tax system have to be traded off against the efficiency …

We use a new panel dataset of credit card accounts to analyze how consumer responded to the 2001 Federal income tax … can be important dynamics in consumers' response to 'lumpy' increases in income like tax rebates, working in part through …