Re-examination of uniform commodity taxes under a non-linear income tax system and its implication for production efficiency

• 成果类型: Article
• 署名作者: Naito, H
• 署名单位: University of Michigan System; University of Michigan; Syracuse University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(98)00052-8
• 发表日期: 1999
• 页码: 165-188
• 关键词: optimal nonlinear income tax; optimal commodity tax; production efficiency

摘要

This paper shows that the result of uniform commodity tax under nonlinear income taxation by Atkinson and Stiglitz (1976) no longer holds if the production side of an economy is taken into the consideration. In particular, imposing a non-uniform commodity tax can Pareto-improve welfare even under nonlinear income taxation. In addition, the paper shows that if the government uses a nonlinear income tax system for income redistribution, then the introduction of distortions in the public sector can Pareto-improve welfare, contrary to the results in Diamond and Mirrlees (1971). (C) 1999 Elsevier Science S.A. All rights reserved.