Capital income taxation and the Atkinson–Stiglitz theorem
نویسندگان
چکیده
منابع مشابه
Optimal Capital Income Taxation∗
In an economy with identical infinitely-lived households that obtain utility from leisure as well as consumption, Chamley (1986) and Judd (1985) have shown that the optimal tax system to pay for an exogenous stream of government purchases involves a zero tax rate on capital in the long run, with tax revenue collected by a distortionary tax on labor income. Extending the results of Hall and Jorg...
متن کاملOn the Optimal Taxation of Capital Income
We show that in models in which labor services are supplied jointly with human capital, the Chamley and Judd result on zero capital income taxation in the limit extends to labor taxes as long as accumulation technologies are constant returns to scale. Moreover, for a class of widely used preferences, consumption taxes are zero in the limit as well. However, we show by the construction of two ex...
متن کاملOn the Relevance of Capital Income Taxation
In a standard model of the intertemporal labour supply/consumption/saving decision, with weak separability between consumption and leisure in each period; identical preferences across households; and a Mirrlees optimal nonlinear tax on labour earnings; the Atkinson-Stiglitz Theorem (AS) implies that there is no case for taxing future consumption and therefore the return to saving. An extension ...
متن کاملOptimal capital income taxation and redistribution
This paper studies the e ects of agent heterogeneity on optimal capital income tax rates. In a two period model with arbitrarily many heterogeneous agents, we explicitly derive the welfare e ects of taxation depending on the distribution of the agents' characteristics. In particular, we show that the sign of the optimal capital income tax rate depends not on the extent of inequality in goods en...
متن کاملPreference heterogeneity and optimal capital income taxation
We analytically and quantitatively examine a prominent justi cation for capital income taxation: goods preferred by those with high ability ought to be taxed. We study an environment where commodity taxes are allowed to be nonlinear functions of income and consumption and nd that, when ability is positively related to a preference for a good, optimal marginal commodity taxes on this good may b...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics Letters
سال: 2016
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2016.08.021