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Piketty, Thomas - 2012

This paper reviews recent developments in the theory of optimal labor income taxation. We emphasize connections between … theory and empirical work that were initially lacking from optimal income tax theory. First, we provide historical and … distribution. We also emphasize connections between actual practice and the predictions from theory, and in particular the …

Persistent link: https://www.econbiz.de/10013098126

The Optimal Income Taxation of Couples

Kleven, Henrik Jacobsen - 2010

This paper analyzes the optimal income tax treatment of couples. Each couple is modelled as a single rational economic agent supplying labor along two dimensions: primary and secondary earnings. We consider fully general joint income tax systems. Separate taxation is never optimal if social...

Persistent link: https://www.econbiz.de/10012760545

The Optimal Treatment of Tax Expenditures

Saez, Emmanuel - 2021

This paper analyzes the optimal treatment of tax expenditures. It develops an optimal tax model where individuals derive utility from spending on a contribution' good such as charitable giving. The contribution good has also a public good effect on all individuals in the economy. The government...

Persistent link: https://www.econbiz.de/10013223054

Using Elasticities to Derive Optimal Income Tax Rates

Saez, Emmanuel - 2021

This paper derives optimal income tax formulas using compensated and uncompensated elasticities of earnings with respect to tax rates. A simple formula for the high income optimal tax rate is obtained as a function of these elasticities and the thickness of the top tail of the income...

Persistent link: https://www.econbiz.de/10013229341

Optimal Taxation of Top Labor Incomes : A Tale of Three Elasticities

Piketty, Thomas - 2011

This paper presents a model of optimal labor income taxation where top incomes respond to marginal tax rates through three channels: (1) standard labor supply, (2) tax avoidance, (3) compensation bargaining. We derive the optimal top tax rate formula as a function of the three corresponding...

Persistent link: https://www.econbiz.de/10013118130

The Elasticity of Taxable Income with Respect to Marginal Tax Rates : A Critical Review

Saez, Emmanuel - 2010

This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect to marginal tax rates (ETI) using tax return data. First, we provide a theoretical framework showing under what assumptions this elasticity can be used as a sufficient...

Persistent link: https://www.econbiz.de/10013152618

The Elasticity of Taxable Income : Evidence and Implications

Gruber, Jonathan; Saez, Emmanuel - 2021

A central tax policy parameter that has recently received much attention, but about which there is substantial uncertainty, is the overall elasticity of taxable income. We provide new estimates of this elasticity which address identification problems with previous work, by exploiting a long...

Persistent link: https://www.econbiz.de/10013219972

The Desirability of Commodity Taxation Under Non-Linear Income Taxation and Heterogeneous Tastes

Saez, Emmanuel - 2021

. An application to the case of savings suggests that, even in the presence of optimal non-linear earnings taxation, there …

Persistent link: https://www.econbiz.de/10013311859

A Theory of Optimal Capital Taxation

Piketty, Thomas - 2012

taxation. We present a dynamic model of savings and bequests with heterogeneous random tastes for bequests to children and for …

Persistent link: https://www.econbiz.de/10013107763

Generalized Social Marginal Welfare Weights for Optimal Tax Theory

Saez, Emmanuel - 2013

This paper proposes a new way to evaluate tax reforms, by aggregating losses and gains of different individuals using “generalized social marginal welfare weights.” A tax system is optimal if no budget neutral small reform can increase the weighted sum of (money metric) gains and losses...

Persistent link: https://www.econbiz.de/10013086297