eprintid: 32903
rev_number: 17
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/03/29/03
datestamp: 2019-11-14 10:51:02
lastmod: 2021-03-13 12:38:27
status_changed: 2020-02-12 14:09:45
type: monograph
metadata_visibility: no_search
creators_name: Sachs, Dominik
creators_name: Tsyvinski, Aleh
creators_name: Werquin, Nicolas
creators_affiliation: Toulouse School of Economics
title: Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium
ispublished: pub
subjects: subjects_ECO
abstract: We study the incidence of nonlinear labor income taxes in an economy with a continuum of endogenous wages. We derive in closed form the effects of reforming nonlinearly an arbitrary tax system, by showing that this problem can be formalized as an integral equation. Our tax incidence formulas are valid both when the underlying assignment of skills to tasks is fixed or endogenous. We show qualitatively and quantitatively that contrary to conventional wisdom, if the tax system is initially suboptimal and progressive, the general-equilibrium trickle-down forces may raise the benefits of increasing the marginal tax rates on high incomes. We finally derive a parsimonious characterization of optimal taxes.
date: 2019-11
date_type: published
publisher: TSE Working Paper
official_url: https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2019/wp_tse_1047.pdf
faculty: tse
divisions: tse
language: en
has_fulltext: TRUE
view_date_year: 2019
full_text_status: public
monograph_type: working_paper
series: TSE Working Paper
volume: 19-1047
place_of_pub: Toulouse
pages: 56
institution: Université Toulouse 1 Capitole
department: Toulouse school of economics
book_title: TSE Working Paper
oai_identifier: oai:tse-fr.eu:123692
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oai_lastmod: 2020-01-31T13:22:07Z
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citation:   Sachs, Dominik, Tsyvinski, Aleh and Werquin, Nicolas  (2019) Nonlinear Tax Incidence and Optimal Taxation in General Equilibrium.  TSE Working Paper, n. 19-1047, Toulouse     
document_url: https://publications.ut-capitole.fr/id/eprint/32903/1/wp_tse_1047.pdf