We evaluate the effectiveness of a more progressive tax scheme in raising government revenues. We develop a life-cycle economy with heterogeneity and endogenous labor supply. Households face a progressive income tax schedule, mimicking the Federal Income tax, and flat-rate taxes that capture...

The paper shows that parents? education is an important, but hardly exclusive part of the common family background that generates positive correlation between the educational attainments of siblings from the same family. But the correlation between the educational attainments of parents and...