Certain effects of random taxes

• 成果类型: Article
• 署名作者: Hines, James R., Jr.; Keen, Michael J.
• 署名单位: University of Michigan System; University of Michigan; University of Tokyo; Universite Clermont Auvergne (UCA); University of London; London School Economics & Political Science
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2021.104412
• 发表日期: 2021
• 关键词: Tax uncertainty; Random taxes; Tax variability; deadweight loss

摘要

This paper explores the implications of tax rate randomness, identifying circumstances in which revenue neutral rate variability increases profitability, economic activity, and the efficiency of resource allocation. Furthermore, with heterogeneous taxpayers, tax rate variability is shown to perform an efficiency enhancing screening function, imposing heavier expected tax burdens on less responsive taxpayers. And while efficient tax randomness enables governments to reduce average costs of taxation, it necessarily increases the marginal cost of taxation over some ranges of expected revenue, so may reduce efficient levels of government spending. (c) 2021 Elsevier B.V. All rights reserved.