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 language | English |
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Pages (from-to) | 257-263 |
Number of pages | 7 |
Journal | Economics Letters |
Volume | 5 |
Issue number | 3 |
DOIs | |
State | Published - 1980 |