Revenue-Maximising Elasticities of Taxable Income in Multi-Rate Income Tax Structures

John Creedy

No 13/24, Treasury Working Paper Series from New Zealand Treasury

Abstract: This paper provides a technical introduction to the use of the elasticity of taxable income in welfare comparisons and optimal tax discussions. It draws together, using a consistent framework and notation, a number of established results concerning marginal welfare changes and optimal taxes. Particular attention is given to the way value judgements can be specified when using this approach, and results are illustrated using the New Zealand income tax. In addition, some new results, particularly in terms of non-marginal tax changes, are presented.

Keywords: Income taxation; Taxable income; Elasticity of taxable income; Excess burden of taxation; Marginal welfare cost; Optimum tax (search for similar items in EconPapers)
JEL-codes: H21 H24 H31 (search for similar items in EconPapers)
Pages: 23
Date: 2013-12
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://treasury.govt.nz/sites/default/files/2013-11/twp13-24.pdf (application/pdf)

Related works:
Working Paper: Revenue-Maximising Elasticities of Taxable Income in Multi-Rate Income Tax Structures (2013)
Working Paper: Revenue-Maximising Elasticities of Taxable Income in Multi-Rate Income Tax Structures (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:13/24

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