The optimal top marginal tax rate: Application to Hungary

Áron Kiss

European Journal of Government and Economics, 2013, vol. 2, issue 2, 100-118

Abstract: The paper applies recent developments in the theory of optimal income taxation to the Hungarian personal income tax system. The main conclusion is that the optimal top marginal tax rate in Hungary is likely to be higher, perhaps substantially, than the actual rate. It is discussed how this result depends on the parameters describing labor-supply behavior, the income distribution, and the redistributive preferences of society.

Keywords: Optimal income taxation; top income tax rate; Hungary; emerging markets (search for similar items in EconPapers)
JEL-codes: H21 H24 (search for similar items in EconPapers)
Date: 2013-12
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Developments in the theory of optimal income taxation with applications to the Hungarian tax system (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:egr:ejge00:v:2:i:2:p:100-118

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