Abstract: The paper shows that in the quasi-linear model of income taxation, the optimal marginal rate of tax can be calculated without needing to specify the utility of consumption. This result is used to investigate the qualitative behavior of the marginal rate. It is shown that every possible qualitative outcome may be achieved by appropriate selection of the skill distribution. Therefore, the model does not place any a priori restrictions on the behavior of the marginal rate and the constancy of findings in previous simulation analysis is a consequence of their restricted structures.
Publication Year: 2000
Publication Date: 2000-01-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 19
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