Towards a theory of the direct-indirect tax mix
Robin Boadway,
Maurice Marchand and
Pierre Pestieau
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Maurice Marchand: CORE and LSM, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium
No 1992026, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)
Abstract:
Despite the fact that all developed economies levy broadly-based indirect taxes alongside direct taxes, little theory is devoted to explaining the direct-indirect tax mix. Our purpose is to show that if different taxes have different evasion characteristics, some optimal tax mix emerges naturally. Assuming that only income tax can be evaded and focusing on a two-class economy, we analyze the case for supplementing optimal (nonlinear) income taxation with commodity taxation, and we develop conditions under which the latter should or should not be uniform.
JEL-codes: H21 H24 H26 (search for similar items in EconPapers)
Date: 1992-03-01
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https://sites.uclouvain.be/core/publications/coredp/coredp1992.html (text/html)
Related works:
Journal Article: Towards a theory of the direct-indirect tax mix (1994) 
Working Paper: Towards a theory of the direct-indirect tax mix (1994)
Working Paper: Towards a Theory of the Direct-Indirect Tax Mix (1992) 
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1992026
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