Bach, Stefan; Corneo, Giacomo; Steiner, Viktor - In: European Economic Review 56 (2012) 6, pp. 1055-1069
This paper provides formulas for optimal top marginal tax rates when couples are taxed according to income splitting … between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are … marginal tax rate converges to about 2/3 and convergence obtains at income levels that are substantially higher than those …
