Top Rate of Income Tax

Alan Manning

CEP Election Analysis Papers from Centre for Economic Performance, LSE

Abstract: The main political parties disagree about the appropriate rate of income Tax on the highest incomes. This note lays out the economic principles surrounding the top rate of income tax and considers the evidence that high earners respond to higher tax rates by working less or by taking steps to avoid tax. The evidence suggests that increased avoidance rather than reduced labour supply is the biggest problem when raising tax rates on the rich.

Keywords: Top; rate; of; income; tax (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-pbe and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepeap:029

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