Simula, Laurent
Gini and optimal income taxation by rank / by Laurent Simula and Alain Trannoy
Resumen
We solve the nonlinear income tax program for rank-dependent social welfare functions, expressing the trade-off between size and inequality using the Gini and related families of positional indices. Absent bunching, ranks in the actual and optimal allocations are invariant. Exploiting this feature, we provide new, simple, and intuitive tax formulas for both the quasilinear and additive cases and new comparative static results. Our approach makes insights from optimal taxation more widely accessible. In some of our simulations the actual US tax policy is close to being optimal—except at the top, where optimal rates are much higher than in actuality.
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
POLITICA FISCAL
DESIGUALDAD
INGRESOS FISCALES
VARIABLES ESTADISTICAS
ANALISIS DE DATOS
ESTADOS UNIDOS
Trannoy, Alain
American Economic Journal : Economic Policy 1945-7731v. 14, n. 3, August 2022, p. 352-379
Gini and optimal income taxation by rank / by Laurent Simula and Alain Trannoy
Resumen
We solve the nonlinear income tax program for rank-dependent social welfare functions, expressing the trade-off between size and inequality using the Gini and related families of positional indices. Absent bunching, ranks in the actual and optimal allocations are invariant. Exploiting this feature, we provide new, simple, and intuitive tax formulas for both the quasilinear and additive cases and new comparative static results. Our approach makes insights from optimal taxation more widely accessible. In some of our simulations the actual US tax policy is close to being optimal—except at the top, where optimal rates are much higher than in actuality.
IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FISICAS
POLITICA FISCAL
DESIGUALDAD
INGRESOS FISCALES
VARIABLES ESTADISTICAS
ANALISIS DE DATOS
ESTADOS UNIDOS
Trannoy, Alain
American Economic Journal : Economic Policy 1945-7731v. 14, n. 3, August 2022, p. 352-379