The Optimal Progressive Income Tax -- The Existence and the Limit Tax Rates
The purpose of this paper is to consider the problem of optimal income taxation in the domain of progressive (convex) income tax function. This paper proves the existence of an optimal tax function and that the optimal marginal and average tax rates tend asymptotically to 100 percent as income level becomes arbitrarily high.
|Date of creation:||Aug 1981|
|Date of revision:|
|Publication status:||Published in Mathematical Social Sciences (1982), 3: 193-222|
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|Order Information:|| Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA|
References listed on IDEAS
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- Ordover, J. A. & Phelps, E. S., 1979. "The concept of optimal taxation in the overlapping-generations model of capital and wealth," Journal of Public Economics, Elsevier, vol. 12(1), pages 1-26, August.
- Feldstein, Martin, 1973. "On the optimal progressivity of the income tax," Journal of Public Economics, Elsevier, vol. 2(4), pages 357-376.
- Mamoru Kaneko, 1981. "On the Existence of an Optimal Income Tax Schedule," Review of Economic Studies, Oxford University Press, vol. 48(4), pages 633-642.
- Kim, Ki Hang & Roush, Fred W., 1981. "Economic planning based on social preference functions," Mathematical Social Sciences, Elsevier, vol. 1(2), pages 193-200, January.
- Kaneko, Mamoru & Nakamura, Kenjiro, 1979. "The Nash Social Welfare Function," Econometrica, Econometric Society, vol. 47(2), pages 423-35, March.
- Aumann, Robert J., 1977. "The St. Petersburg paradox: A discussion of some recent comments," Journal of Economic Theory, Elsevier, vol. 14(2), pages 443-445, April.
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