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Optimal Income Taxation With Quasi-Linear Preferences Revisited Author info | Abstract | Publisher info | Download info | Related research | Statistics Robin Boadway () (Queen's University)
Katherine Cuff (Queen's University)
Maurice Marchand (Universite Catholique de Louvain)
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With quasi-linear in leisure preferences, closed-form solutions for the marginal tax rates and the marginal utility of consumption under utilitarian and maxi-min objectives depend only on the skill distribution. Bunching induced by binding second-order incentive conditions also depends only on the distribution, but does not affect solutions in the non-bunched range. These are affected if bunching is caused by binding non-negative income constraints. Specific skill distributions are considered and it shown that the pattern of marginal tax rates depend critically on whether or not the skill distribution is truncated at the upper end.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
984.
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Length: 33 pages
Date of creation: Apr 1999Date of revision:
Handle: RePEc:qed:wpaper:984Contact details of provider: Postal: Kingston, Ontario, K7L 3N6 Phone: (613) 533-2250 Fax: (613) 533-6668 Email: Web page: http://www.econ.queensu.ca/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Mark Babcock).
Keywords: Optimal Income Tax ; Quasi-Linear Preferences ; Other versions of this item:
Find related papers by JEL classification: H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
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