Dynamic optimal income taxation with government commitment
نویسندگان
چکیده
منابع مشابه
Income Taxation and Optimal Government Policy
Various economic literatures address the question whether first-best prescriptions for government policy require modification because redistributive income taxation distorts labor supply and cannot achieve the distributive ideal. Perhaps second-best rules for public goods provision, corrective taxation, public sector pricing, and other government activity should reflect concerns about distribut...
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There is a strong case for arguing that, in contradiction to some traditional arguments in public economics, capital income should be taxed, though not necessarily under the same rate schedule as labour earnings. The Dual Income Taxation (DIT) system consists of two parallel piecewise linear tax schedules, in which that for capital income has a zero lower bracket rate and an upper bracket rate ...
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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...
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This handbook chapter reviews recent developments in the theory of optimal labor income taxation. We emphasize connections between theory and empirical work that were initially lacking from optimal income tax theory. First, we provide historical and international background on labor income taxation and means-tested transfers. Second, we present the simple model of optimal linear taxation. Third...
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Beginning with Mirrlees, the optimal taxation literature has generally focused on economies where individuals are differentiated by only their productivity. In this paper we examine models where individuals are differentiated by two or more characteristics, and the numerical challenges posed by these problems. We examine cases where individuals differ in productivity, elasticity of labor supply...
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ژورنال
عنوان ژورنال: Journal of Public Economics
سال: 1991
ISSN: 0047-2727
DOI: 10.1016/0047-2727(91)90055-7