User:Nick Gardner /Sandbox: Difference between revisions
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<ref>[http://www.economics.harvard.edu/faculty/mankiw/files/Optimal%20Taxation%20in%20Theory.pdf N. Gregory Mankiw, Matthew Weinzierl, and Danny Yagan: ''Optimal Taxation in Theory and Practice'', American Economic Review, March 15 2009]</ref> | |||
*1)Optimal marginal tax rate schedules depend on the distribution of ability; | |||
*2) The optimal marginal tax schedule could decline at high incomes; | |||
*3) A flat tax, with a universal lump-sum transfer, could be close to optimal; *4) The optimal extent of redistribution rises with wage inequality; | |||
*5) Taxes should depend on personal characteristics as well as income; | |||
*6) Only final goods ought to be taxed, and typically they ought to be taxed uniformly; | |||
*7) Capital income ought to be untaxed, at least in expectation; and | |||
*8) In stochastic, dynamic economies, optimal tax policy requires increased sophistication. | |||
<references/> | <references/> | ||
Revision as of 00:22, 15 December 2009
- 1)Optimal marginal tax rate schedules depend on the distribution of ability;
- 2) The optimal marginal tax schedule could decline at high incomes;
- 3) A flat tax, with a universal lump-sum transfer, could be close to optimal; *4) The optimal extent of redistribution rises with wage inequality;
- 5) Taxes should depend on personal characteristics as well as income;
- 6) Only final goods ought to be taxed, and typically they ought to be taxed uniformly;
- 7) Capital income ought to be untaxed, at least in expectation; and
- 8) In stochastic, dynamic economies, optimal tax policy requires increased sophistication.