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This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...
Persistent link: https://www.econbiz.de/10012782613
The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy where the welfare of individuals depends in part on relative after-tax consumption, i.e., we specify individual welfare as a function of absolute and relative after-tax...
Persistent link: https://www.econbiz.de/10013226590
The purpose of the present note is to explore the structure of optimal income taxation/redistribution in an economy where the welfare of individuals depends in part on relative after-tax consumption, i.e., we specify individual welfare as a function of absolute and relative after-tax...
Persistent link: https://www.econbiz.de/10012478985
Persistent link: https://www.econbiz.de/10012593649
By constructing a social welfare function that incorporates the explicit value judgments of Atkinson's measure of inequality, the paper develops implications of optimal income taxation derived using double limit analysis for transfers and inequality. The losses arising from transfers in the...
Persistent link: https://www.econbiz.de/10014237246
This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be...
Persistent link: https://www.econbiz.de/10014400295
Persistent link: https://www.econbiz.de/10014235225
Persistent link: https://www.econbiz.de/10011413349
In this paper we study the impact of tax-benefit systems on income inequality and work incentives across the 27 Member … Tax Rates.The extent to which tax-benefit systems contribute to income redistribution and provide work incentives at the … of a trade-off between income redistribution and work incentives across EU-27 countries. …
Persistent link: https://www.econbiz.de/10009738946
The paper studies the impact of tax-benefit policies on the distribution of household incomes and work incentives in …%), would have the highest first-order impact for a given fiscal cost. However, these measures would also weaken work incentives … incentives at low and middle-income levels together with modest reductions in poverty and inequality. This Working Paper relates …
Persistent link: https://www.econbiz.de/10012111111