This paper studies majority voting over non-linear income taxes when individuals respond to taxation by substituting untaxable leisure to taxable labor. We first show that voting cycle over progressive and regressive taxes is inevitable. This is because the middle-class can always lower its tax...

The apparent ubiquity of progressive taxation in advanced democracies has animated research by political economists in the past decade, but little progress has been made in modeling political equilibria over tax policy when labor supply is elastic with respect to taxation. Here, we postulate an...

The goal of this paper is to study the effects of introducing income redistribution at the municipal level, with the adoption of local tax progressivity. In particular, we analyse whether this complex fiscal tool modifies the incentives of local politicians to be strategic leading to higher tax...