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Is the Spanish economy positioned at its optimal progressivity level in personal income tax? This article quantifies … progressivity would be optimal, even though it would involve an efficiency loss. The optimal reform of the tax schedule would reduce … wealth and income inequality at the cost of negative effects on capital, labor, and output. Finally, these theoretical …
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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...
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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...
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Several frictions restrict the government's ability to tax assets. First, it is very costly to monitor trades on international asset markets. Second, agents can resort to nonobservable low-return assets such as cash, gold or foreign currencies if taxes on observable assets become too high. This...
Persistent link: https://www.econbiz.de/10010467365
Several frictions restrict the government s ability to tax assets. First of all, it is very costly to monitor trades on international asset markets. Moreover, agents can resort to non-observable low-return assets such as cash, gold or foreign currencies if taxes on observable assets become too...
Persistent link: https://www.econbiz.de/10010484342
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