Optimal marginal and average income taxation under maximin

Robin Boadway and Laurence Jacquet

Journal of Economic Theory, 2008, vol. 143, issue 1, 425-441

Abstract: Using the Mirrlees optimal income tax model under maximin, we derive fairly mild conditions for a decreasing marginal tax rate throughout the skill distribution with no bunching, a strictly concave tax function in income and a single-peaked average tax schedule. Assuming additive preferences and an isoelastic disutility of labor function, these tax profiles are implied by aggregate skills that are non-decreasing with the skill level. If preferences are quasilinear in leisure or in consumption, these tax profiles are also obtained under a large set of skill distributions.

Keywords: Maximin; Optimal; income; taxation (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (52)

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Related works:
Working Paper: Optimal Marginal and Average Income Taxation under Maxi-min (2006)
Working Paper: Optimal Marginal And Average Income Taxation Under Maxi-min (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:143:y:2008:i:1:p:425-441

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