Optimal top marginal tax rates under income splitting for couples
Stefan Bach (),
Giacomo Corneo and
No 8435, CEPR Discussion Papers from C.E.P.R. Discussion Papers
This paper analytically derives optimal top marginal tax rates when couples are taxed according to income splitting between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are then quantified for Germany. Estimation results based on an exhaustive dataset of top taxpayers suggest that the optimal asymptotic tax rate is close to 2/3 and only applies to incomes that are considerably higher than those currently subject to the actual top tax rate.
Keywords: optimal income tax; top incomes (search for similar items in EconPapers)
JEL-codes: D31 D72 H23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Optimal top marginal tax rates under income splitting for couples (2012)
Working Paper: Optimal top marginal tax rates under income splitting for couples (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8435
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=8435
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().