Optimal Income Taxation

Louis Kaplow

No 30199, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This article explores subjects in optimal income taxation characterized by recent research interest, practical importance in light of concerns about inequality, potential for misunderstanding, and prospects for advancement. Throughout, the analysis highlights paths for further investigation. Areas of focus include multidimensional abilities and endogenous wages; asymmetric information and the income of founders; production and consumption externalities from labor effort; market power and rents; behavioral phenomena relating to perceptions of the income tax schedule, myopic labor supply, and the interactions of savings, savings policies, and labor supply; optimal income transfers; the relationship between optimal income taxation and the use of other instruments; and issues relating to the social welfare function and utility functions, including nonwelfarist objectives, welfare weights, heterogeneous preferences, and taxation of the family.

JEL-codes: A13 D61 D62 D63 D82 D83 H20 H21 H23 H24 H41 H43 H53 H55 J22 L40 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-lma, nep-pbe, nep-pub and nep-upt
Note: PE
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Citations: View citations in EconPapers (1)

Published as Louis Kaplow, 2024. "Optimal Income Taxation," Journal of Economic Literature, vol 62(2), pages 637-738.

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