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Revisiting the Classical View of Benefit-Based Taxation

Weinzierl, Matthew - 2014

This paper explores how the persistently popular "classical" logic of benefit-based taxation, in which an individual's benefit from public goods is tied to his or her income-earning ability, can be incorporated into modern optimal tax theory. If Lindahl's methods are applied to that view of...

Persistent link: https://www.econbiz.de/10012457931

In Praise of Frank Ramsey's Contribution to the Theory of Taxation

Stiglitz, Joseph E. - 2014

Frank Ramsey's classic paper "A contribution to the theory of taxation" gave rise to the modern theory of optimal taxation. This paper traces the literature that grew out of Ramsey's 1927 paper and assesses which of its key insights has proven robust. Though the path breaking work of Peter...

Persistent link: https://www.econbiz.de/10012458135

A Theory of Income Taxation under Multidimensional Skill Heterogeneity

Rothschild, Casey - 2014

We develop a unifying framework for optimal income taxation in multi-sector economies with general patterns of externalities. Agents in this model are characterized by an N-dimensional skill vector corresponding to intrinsic abilities in N potentially externality-causing activities. The private...

Persistent link: https://www.econbiz.de/10012458842

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/10012462038

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

Saez, Emmanuel - 2000

This paper revisits the Atkinson-Stiglitz result on uselessness of commodity taxation in the presence of optimal non-linear income taxation in a more general setup, namely when tastes are heterogeneous. This general analysis displays the key economic assumptions under which the Atkinson-Stiglitz...

Persistent link: https://www.econbiz.de/10012470701

Taxation of Investment and Savings in a World Economy : The Certainty Case

Gordon, Roger H. - 1985

market where there are many countries, each with its own tax rates and inflation rate. When nominal interest is taxable but … and, among the remaining investors, those with lower tax rates buy bonds of countries with higher inflation rates. Because … of the tax system, countries with a higher inflation rate must pay a higher real interest rate on their debt. This is …

Persistent link: https://www.econbiz.de/10012477356

Optimal Tax Theory : Econometric Evidence and Tax Policy

Boskin, Michael J. - 1976

The purpose of this paper is to provide a progress report on the issue of the implications of optimal tax theory and recent econometric evidence for tax policy. Toward this end, Section 2 provides a brief and often heuristic summary of the major results of optimal tax theory. Section 3 reports...

Persistent link: https://www.econbiz.de/10012478977

Dynamic Taxation

Stantcheva, Stefanie - 2020

This paper reviews recent advances in the study of dynamic taxation, considering three main approaches: the dynamic Mirrlees, the parametric Ramsey, and the sufficient statistics approaches. In the first approach, agents' heterogeneous abilities to earn income are private information and evolve...

Persistent link: https://www.econbiz.de/10012479228

Understanding Different Approaches to Benefit-Based Taxation

Scherf, Robert - 2019

The normative principle of benefit-based taxation has exerted substantial influence on many areas of public finance, but it has been largely set aside in the modern theoretical approach to optimal income taxation, where welfarist objectives dominate. A prerequisite for that gap to close is the...

Persistent link: https://www.econbiz.de/10012480220

Sufficient Statistics for Nonlinear Tax Systems with Preference Heterogeneity

Ferey, Antoine; Lockwood, Ben; Taubinsky, Dmitry - National Bureau of Economic Research - 2021

This paper provides general and empirically implementable sufficient statistics formulas for optimal nonlinear tax systems in the presence of preference heterogeneity. We study unrestricted tax systems on income and savings (or other commodities) that implement the optimal direct-revelation...

Persistent link: https://www.econbiz.de/10012794610