A Note on Redistributive Taxation, Labor Supply, and National Income
AbstractThis paper shows that redistributive taxation can raise per capita income provided that labor supply is sufficiently backward-bending at higher wage rates. Moreover, we study general equilibrium effects regarding work incentives for less able individuals. Finally, we show that optimal taxation typically requires per capita income to decrease with higher taxation at the margin.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 2 (2003)
Issue (Month): 1 (April)
backward-bending labor supply; linear income tax; national income;
Find related papers by JEL classification:
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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