Abstract
The purpose of this paper is to consider the problem of optimal income taxation in the domain of a progressive (convex) income tax function. This paper proves the existence of an optimal tax function and proves that the optimal marginal and average tax rates tend asymptotically to 100 percent as the income level becomes arbitrarily high.
Original language | English |
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Pages (from-to) | 193-221 |
Number of pages | 29 |
Journal | Mathematical Social Sciences |
Volume | 3 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1982 |
Externally published | Yes |
Keywords
- Nash social welfare function
- optimal income tax
- Progressive income tax
ASJC Scopus subject areas
- Statistics, Probability and Uncertainty
- Economics and Econometrics