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This paper rethinks the design of the income tax by assuming that the objective of the tax is not to redistribute from rich to poor but instead to provide some insurance to individuals against the uncertainties they face in their future earnings, a motivation for the tax proposed in Buchanan...
Persistent link: https://www.econbiz.de/10014421180
The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy …, of course, an additional incentive for income redistribution from wealthy to poor citizens is created and the logical …
Persistent link: https://www.econbiz.de/10012478985
importance in light of concerns about inequality, potential for misunderstanding, and prospects for advancement. Throughout, the …
Persistent link: https://www.econbiz.de/10013334417
The marginal social value of income redistribution is understood to depend on both the concavity of individuals … taxation and on normative inequality measurement, it seems to be accepted that the role of these two sources of concavity is … symmetric with regard to the social concern about inequality in the distribution of income. Direct examination of the question …
Persistent link: https://www.econbiz.de/10012468707
Knowing the elasticity of taxable income (ETI) is crucial for understanding the effects of taxation on taxpayer behavior and consequently on tax revenues. Previous research finds that high-income individuals are the most sensitive to tax policy changes. However, these individuals have more...
Persistent link: https://www.econbiz.de/10012453185
The philanthropic sector is highly consequential, particularly in the United States, and the most important policies directed toward this sector are tax policies. Yet most economic analysis of the optimal tax treatment of charitable giving is ad hoc, treating it as a subject unto itself. This...
Persistent link: https://www.econbiz.de/10014421177
We characterize optimal policies in a multidimensional nonlinear taxation model with bunching. We develop an empirically relevant model with cognitive and manual skills, firm heterogeneity, and labor market sorting. The analysis of optimal policy is based on two main results. We first derive an...
Persistent link: https://www.econbiz.de/10013210043
This paper considers the optimal tax treatment of voluntary transfers to individuals in a" framework that integrates redistributive income taxation and estate and gift taxation. Under this" formulation, redistributive considerations become secondary. The optimal tax treatment of" transfers...
Persistent link: https://www.econbiz.de/10012471814
redistribution creates more post-tax inequality. The welfare state will encounter severe risks when free migration of people, goods … the moral hazard effects tend to increase the inequality in the economy, and, under constant returns to risk taking, this … taxation will either imply that the pie becomes bigger when there is less inequality in pre-tax incomes or that more …
Persistent link: https://www.econbiz.de/10012473534
provides a unique opportunity to study preferences for redistribution via revealed preference. We study the motives driving tax …
Persistent link: https://www.econbiz.de/10012481119