A reconsideration of the optimal income tax
This paper develops a formula for the optimal nonlinear income tax, the terms of which are familiar from the theory of linear income taxation. The development uses the idea of a perturbation of the optimal schedule and is based upon as assumption of differentiability. It is also shown that the intro...
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| Format: | Working paper |
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University of Oxford
2000
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| _version_ | 1826298548506853376 |
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| author | Roberts, K |
| author_facet | Roberts, K |
| author_sort | Roberts, K |
| collection | OXFORD |
| description | This paper develops a formula for the optimal nonlinear income tax, the terms of which are familiar from the theory of linear income taxation. The development uses the idea of a perturbation of the optimal schedule and is based upon as assumption of differentiability. It is also shown that the introduction of non-differentiability, implying bunching of taxpayers, may be desirable and, in this case, the optimal schedule may be difficult to determine. The analysis can be applied to nonlinear tax reform. |
| first_indexed | 2024-03-07T04:48:33Z |
| format | Working paper |
| id | oxford-uuid:d428c7fe-a9c3-4c97-8c5e-76c115044b11 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T04:48:33Z |
| publishDate | 2000 |
| publisher | University of Oxford |
| record_format | dspace |
| spelling | oxford-uuid:d428c7fe-a9c3-4c97-8c5e-76c115044b112022-03-27T08:16:22ZA reconsideration of the optimal income taxWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:d428c7fe-a9c3-4c97-8c5e-76c115044b11Bulk import via SwordSymplectic ElementsUniversity of Oxford2000Roberts, KThis paper develops a formula for the optimal nonlinear income tax, the terms of which are familiar from the theory of linear income taxation. The development uses the idea of a perturbation of the optimal schedule and is based upon as assumption of differentiability. It is also shown that the introduction of non-differentiability, implying bunching of taxpayers, may be desirable and, in this case, the optimal schedule may be difficult to determine. The analysis can be applied to nonlinear tax reform. |
| spellingShingle | Roberts, K A reconsideration of the optimal income tax |
| title | A reconsideration of the optimal income tax |
| title_full | A reconsideration of the optimal income tax |
| title_fullStr | A reconsideration of the optimal income tax |
| title_full_unstemmed | A reconsideration of the optimal income tax |
| title_short | A reconsideration of the optimal income tax |
| title_sort | reconsideration of the optimal income tax |
| work_keys_str_mv | AT robertsk areconsiderationoftheoptimalincometax AT robertsk reconsiderationoftheoptimalincometax |