Document Type
Journal article
Source Publication
Journal of Public Economics
Publication Date
1977
Volume
7
Issue
2
First Page
203
Last Page
235
Abstract
Take consumers to be described by a parameter h (skill, needs, etc.) with utilities defined on N commodities, including factor supplies. Our main result is that if in the optimum each component of this consumption vector is bounded and bounded away from zero over the population, each marginal tax must be zero at both ends of the corresponding tax schedule. For the income tax case, it is also shown that if the marginal tax rate at the top of the scale is positive, one can construct another tax schedule which is strongly Pareto superior (dominating the first one at all or most income levels), requirements of information being low.
DOI
10.1016/0047-2727(77)90046-9
Print ISSN
00472727
Publisher Statement
Copyright © 1977 Published by Elsevier B.V.
Access to external full text or publisher's version may require subscription.
Full-text Version
Accepted Author Manuscript
Language
English
Recommended Citation
Seade, J. K. (1977) On the shape of optimal tax schedules. Journal of public economics, 7(2), 203-235. DOI: http://dx.doi.org/10.1016/0047-2727(77)90046-9