Skill distribution and the optimal marginal income tax rate

Jinlu Li, Shuanglin Lin and Congjun Zhang

Economics Letters, 2013, vol. 118, issue 3, 515-518

Abstract: This paper emphasizes the role of skill distribution in determining the optimal marginal tax rates. It rigorously shows that the optimal marginal tax rates can be strictly increasing, strictly decreasing, U-shaped, or inverse U-shaped as skill increases depending on the skill distribution.

Keywords: Marginal income tax rate; Skill distribution; Welfare maximization (search for similar items in EconPapers)
JEL-codes: D82 H21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:3:p:515-518

DOI: 10.1016/j.econlet.2012.12.022

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