The optimal progressive income tax. The existence and the limit tax rates

Mamoru Kaneko

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3 Citations (Scopus)

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 languageEnglish
Pages (from-to)193-221
Number of pages29
JournalMathematical Social Sciences
Volume3
Issue number2
DOIs
Publication statusPublished - 1982
Externally publishedYes

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Keywords

  • Nash social welfare function
  • optimal income tax
  • Progressive income tax

ASJC Scopus subject areas

  • Statistics, Probability and Uncertainty
  • Economics and Econometrics

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