Optimal tax theory has shown that, under weak assumptions, indirect taxation such as production subsidies, tariffs, or …. However, these important results of optimal tax theory, namely production efficiency and uniform commodity taxation under non …

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 …