Macnamara, Patrick; Pidkuyko, Myroslav; Rossi, Raffaele - 2021
to marginal tax changes. In our economy, agents who are sufficiently productive can obtain higher returns by choosing to … be entrepreneurs. Return heterogeneity amplifies the responsiveness of total income to marginal tax changes along the … incentives to invest for the richest, high-return entrepreneurs, thus amplifying their income responses to marginal tax changes …