We study the optimal tax system when taxpayers earn different kinds of income by supplying different inputs. Imperfect … substitution between inputs allows for general equilibrium effects. We consider any type of cross-base responses to tax changes … such as income-shifting. Formalizing the tax schedule as the sum of many one-dimensional schedules, we express optimal …

We theoretically express the Laffer tax rate on capital income as a function of the elasticities of capital income (the … "direct" elasticity) and of labor income (the "cross" elasticity) with respect to the net-of-tax rate on capital income. We … estimate these elasticities using salient capital tax reforms that took place in France between 2008 and 2017. Graphical …

We analyze the optimal nonlinear income tax schedule when taxpayers earn multiple incomes and differ along many … unobserved dimensions. We derive the necessary conditions for the government’s optimum using both a tax perturbation and a … method to find the optimal tax schedule. Applied to the optimal taxation of couples, we find that optimal isotax curves are …

We derive a sufficient statistics optimal tax formula in a general model that incorporates unemployment and endogenous … wages, to study the shape of the tax and transfer system at the bottom of the distribution. The sufficient statistics are … using policy variation from the U.S. tax and transfer system. Our results suggest that the optimal tax more closely …

demand and wages. Compared to their efficient values, gross wages, unemployment and participation are lower. Average tax … rates are increasing. Marginal tax rates are positive, even at the top. Finally, numerical simulations suggest that … redistribution is much more important in our setting than in a comparable Mirrlees (1971) setting. …

This paper characterizes the optimal redistributive tax schedule in a matching unemployment framework with endogenous … (voluntary) nonparticipation and (involuntary) unemployment. The optimal employment tax rate is given by an inverse employment … responses. For plausible parameters, our matching environment induces much lower employment tax rates than the usual competitive …

-Mirrlees condition imposed. Employing a tax perturbation approach, we derive an optimal tax formula that generalizes previous results by … allowing for income effects and extensive margin responses. We provide a sufficient condition for optimal marginal tax rates to … using U.S. data. -- Optimal tax formula ; tax perturbation ; random participation …