to work. Education subsidies (taxes) are only targeted at off-setting the labor tax distortion by encouraging educational … investments in human capital increase. The equity-efficiency trade-off is therefore less severe when progressive income taxes …

revenues of the national budget from the said taxes. Both Lithuania and Estonia are currently located in the prohibitive range …

when growth occurs. A tax-subsidy policy is hypothesised in the manner advocated by optimal tax theory to effectively deal … with inequity by minimizing the distortionary effects of income taxes. This framework is ultimately endogeneized in the …

income or consumption taxes; and under-investment in human and physical capital under income taxes. Without investment … subsidies, consumption taxes do better than uniform income taxes, but can be improved on locally via positive taxation of …) consumption and labor income taxes are either zero or of the same rate but opposite signs; (ii) physical capital income taxes are …

subsidy to capitalincome and a tax on labor income. Finally, I find that when taxes on capital income,labor income, and … property are available, capital-income taxes are generally the lastresort to finance government expenditures.My results show … loss of utility overthe transition from no taxes to capital subsidies is too large so the idea itself is notutility …

In this thesis we explore the relationship between changes in labor income inequality and movements in labor taxes over … voter result over sequence of taxes. We consider an infinite horizon economy in which agents are heterogeneous with respect … affine taxes on labor and capital income - that can be supported as a competitive equilibrium. The thesis assumes balanced …