Optimal linear commodity taxation under optimal non-linear income taxation

• 成果类型: Article
• 署名作者: Jacobs, Bas; Boadway, Robin
• 署名单位: Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Queens University - Canada; Tinbergen Institute; Leibniz Association; Ifo Institut
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2014.04.012
• 发表日期: 2014
• 页码: 201-210
• 关键词: Atkinson-Stiglitz theorem; Optimal non-linear income taxation; Optimal linear and non-linear indirect taxation

摘要

This paper analyzes optimal linear commodity taxes joint with non-linear income taxes. We provide optimal tax rules based on empirically observable elasticities, earnings and commodity demands. We demonstrate that commodities should be taxed/subsidized if - conditional on earnings - doing so boosts labor supply as the critical role of commodity taxation is to alleviate distortions on labor supply caused by income taxation. We extend the standard formula for optimal non-linear income taxation for the presence of optimal linear commodity taxes. We correct parts of the literature by showing that the optimal second-best allocations derived by Atkinson and Stiglitz (1976, 1980) cannot be supported by linear commodity taxes. (C) 2014 Elsevier B.V All rights reserved.