Optimal linear income taxation with partial information

Motty Perry*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This letter presents a preliminary analysis of a tax problem whereby the tax function can depend not only on income but also on variables which are correlated with 'earning ability' and are known to the government. Our main result suggests that the tax system improved through increased use of such variables, and the optimal tax rate becomes larger.

Original languageEnglish
Pages (from-to)257-263
Number of pages7
JournalEconomics Letters
Volume5
Issue number3
DOIs
StatePublished - 1980

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