The rise or fall of graduated income tax rates

Kemper Moreland

Applied Economics Letters, 2004, vol. 11, issue 4, 227-229

Abstract: This study constructs a wage distribution for the US from CPS data and then uses simulations to determine the optimal piecewise-linear-income tax. Previous optimal tax studies have generally found optimal marginal tax rates decline as income rises. This study argues this result arises because these previous studies assume that society will be willing to fund substantial guarantees. This study assumes that such a guarantee will not be politically acceptable, but that an exemption will be. In these circumstances it is found that optimal marginal tax rates rise as income rises.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:11:y:2004:i:4:p:227-229

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504850410001674858

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().