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The Optimal Taxation of Height : A Case Study of Utilitarian Income Redistribution

Mankiw, N. Gregory - 2011

Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall...

Persistent link: https://www.econbiz.de/10013134658

Preference Heterogeneity and Optimal Capital Income Taxation

Golosov, Mikhail - 2010

We examine a prominent justification for capital income taxation: goods preferred by those with high ability ought to be taxed. In an environment where commodity taxes are allowed to be nonlinear functions of income and consumption, we derive an analytical expression that reveals the forces...

Persistent link: https://www.econbiz.de/10013135052

The Promise of Positive Optimal Taxation : Normative Diversity and a Role for Equal Sacrifice

Weinzierl, Matthew - 2012

theory of optimal taxation …

Persistent link: https://www.econbiz.de/10013096851

Equalizing Outcomes and Equalizing Opportunities : Optimal Taxation When Children's Abilities Depend on Parents' Resources

Gelber, Alexander - 2012

Empirical research suggests that parents' economic resources affect their children's future earnings abilities. Optimal tax policy therefore treats future ability distributions as endogenous to current taxes. We model this endogeneity, calibrate the model to match estimates of the...

Persistent link: https://www.econbiz.de/10013101515

Why Do We Redistribute so Much But Tag so Little? The Principle of Equal Sacrifice and Optimal Taxation

Weinzierl, Matthew - 2012

this puzzle is a symptom of a more fundamental problem. Conventional theory neglects the diverse normative criteria with … this revision to conventional theory …

Persistent link: https://www.econbiz.de/10013107010

Optimal Taxation in Theory and Practice

Mankiw, N. Gregory - 2010

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax … policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened … theory. Moreover, some of theory's more subtle prescriptions, such as taxes that involve personal characteristics, asset …

Persistent link: https://www.econbiz.de/10013152503

Weinzierl, Matthew - 2016

U.S. survey respondents' views on distributive justice are shown to differ in two specific, related ways from what is conventionally assumed in modern optimal tax research. A large share of respondents, and in some cases a large majority, resist the full equalization of inequality due to brute...

Persistent link: https://www.econbiz.de/10012985944

Revisiting the Classical View of Benefit-Based Taxation

Weinzierl, Matthew - 2014

's benefit from public goods is tied to his or her income-earning ability, can be incorporated into modern optimal tax theory. If … may offer a useful approach to a positive optimal tax theory …

Persistent link: https://www.econbiz.de/10013040529

Designing, Not Checking, for Policy Robustness : An Example with Optimal Taxation

Lockwood, Benjamin B; Sial, Afras Y.; Weinzierl, Matthew - 2022

Economists typically check the robustness of their results by comparing them across plausible ranges of parameter values and model structures. A preferable approach to robustness—for the purposes of policymaking and evaluation—is to design policy that takes these ranges into account. We...

Persistent link: https://www.econbiz.de/10014244253

De Gustibus Non Est Taxandum : Heterogeneity in Preferences and Optimal Redistribution

Lockwood, Benjamin B - 2012

The prominent but unproven intuition that preference heterogeneity reduces re-distribution in a standard optimal tax model is shown to hold under the plausible condition that the distribution of preferences for consumption relative to leisure rises, in terms of first-order stochastic dominance,...

Persistent link: https://www.econbiz.de/10013111742