A generalization of the Deaton-Hellwig results on uniform commodity taxation

• 成果类型: Article
• 署名作者: Boadway, Robin; Cuff, Katherine
• 署名单位: Queens University - Canada; McMaster University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2022.104731
• 发表日期: 2022
• 关键词: optimal income tax; Commodity taxation; Piecewise linear income tax

摘要

Deaton (1979) showed that with an optimal linear progressive tax, commodity taxes are redundant if preferences are weakly separable between goods and labour and quasi-homothetic in goods. Hellwig (2009) later showed that any allocation with differential commodity taxes and an arbitrary linear pro-gressive income tax is Pareto-dominated by one with uniform commodity taxes and a reformed linear progressive tax. We show that Deaton & rsquo;s theorem and Hellwig & rsquo;s extension apply a) with a piecewise linear income tax and tax credits, b) when some individuals earn no income either by choice or involuntarily, and c) when individual preferences for leisure differ. (c) 2022 Elsevier B.V. All rights reserved.