Research in accounting for income taxes

Accounting for Family Background when Designing Optimal Income Taxes: A Microeconometric Simulation Analysis

Income Taxes as Reciprocal Tariffs

Public finance experts have long explored the issue of income taxes making the cost of market transactions higher than nonmarket ones. A 50 percent income tax, for example, requires $20,000 in income to purchase $10,000 of market goods. The tax can be avoided, however, if the same goods can be produced at home. The upshot is that income taxes encourage the home production of goods and services ...

Dividend taxes and income shifting

This paper analyzes whether a dividend tax cut for owner–managers of closely held corporations encourages income shifting, income generation, or both. We use rich, micro data from Sweden for the period 2000–2011 comprising the entire Swedish population, as well as firmand individual-level data for all owner–managers in closely held corporations, partnerships, and self-employed. We find robust e...

Optimal Income Taxes: An Example

We develop an algorithm for computing optimal taxes in an open economy extension of the standard one-sector growth model. Typically in the literature on optimal taxation, the first period tax rate is arbitrarily assumed. We construct an example where the first period tax rate is endogenously determined. In addition to computing the exact time path of taxes, the example brings forth some interes...

Migration and optimal income taxes.

The issue addressed in this paper is the optimal taxation of incomes earned tn the home economy, and of incomes earned abroad, when people can migrate. As a preliminary, the optimal taxation of home incomes when there is migration and no taxation of foreign incomes, is discussed. Then in a more general setting, we deal with optimal taxation of different kinds of labour when another kind of labo...