We study the optimal tax system in a dynamic model where di¤erences in wages induce di¤erences in inheritances, and the transition from parent ability to child ability is described by a Markov chain. In accordance with empirical evidence, we assume that in any generation more able individuals...

Tax reforms are crucial to promoting inclusive growth in India. The replacement of a myriad of consumption taxes by a Goods and Services Tax (GST) will boost India's competitiveness, investment, job creation and tax compliance. The potential to raise additional revenue from taxes on goods and...

This article examines the distribution of wealth and theories justifying both the acquisition of great wealth and limitations on it. Discusses the estate tax, its economic effects and effectiveness in equalizing the distribution of wealth. Concludes that it has been very ineffective and that...