Redistributive taxation and the household: the case of individual filings

• 成果类型: Article; Proceedings Paper
• 署名作者: Schroyen, F
• 署名单位: Norwegian School of Economics (NHH)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(02)00053-1
• 发表日期: 2003
• 页码: 2527-2547
• 关键词: individual filing; Optimal income taxation; redistribution; tax arbitrage; household production

摘要

In this paper I look at the tax treatment of households under individual filings and characterise the efficiency properties of an income tax schedule that redistributes from rich to poor households. Because tax liabilities are determined on individual incomes but the decision to earn those incomes is made at the household level, tax liable members of the same household can side trade leisure for net income with one another, and such side trade enables them to carry out tax arbitrage. I analyse the problem for a two-class economy both with and without perfect assortative mating. The main conclusion is that the prevention of tax arbitrage imposes structure on the graduation of the tax schedule. (C) 2002 Elsevier B.V All rights reserved.