Optimal tax theory or the theory of optimal taxation is the study of designing and implementing a tax that maximises a social welfare function subject to economic constraints. [1]

Optimal tax theory encompasses a range of models that focus on particular aspects of the tax system. These different models share three features. First, each model specifies a set of …

2024年11月5日 · Economic optimality asserts that taxes should limit economic distortions and not drastically alter people’s decision-making. In this view, taxes should follow clear guidelines, …

optimal design of a tax system is a topic that has long fascinated economic theorists and flummoxed economic policymakers. This paper explores the interplay between tax theory and …

theory embraces the insights of optimal taxation but also takes seriously the technol-ogy of raising taxes and the constraints placed upon tax policy by that technology. A theory of optimal tax …

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have …

1) Understand the core optimal income tax model: linear and nonlinear taxes in the Saez (2001) framework. General method, intuitive, sufficient statistics. 2) Introduce the mechanism design …