This Handbook entry presents a conceptual, normative overview of the subject of taxation. It emphasizes the … relationships among the main functions of taxation—notably, raising revenue, redistributing income, and correcting externalities …—and the mapping between these functions and various forms of taxation. Different types of taxation as well as expenditures on …

This paper argues that, for a given overall level of labour income taxation, a more progressive tax schedule reduces … these theoretical predictions on a panel of 21 OECD countries over 1998-2008. Controlling for the burden of taxation at the … average wage, we show that a more progressive taxation reduces the unemployment rate and increases the employment rate. These …