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 payroll, state and local taxes and the corporate income tax. We …

fiscal policies that achieve a desired degree of redistribution in society. We find that marginal tax rates on the top 1% of …In this paper we argue that very high marginal labor income tax rates are an effective tool for social insurance even …