A characteristics approach to optimal taxation line drawing and tax - driven product innovation Christian Gillitzer, Henrik Jacobsen Kleven, Joel Slemrod
By: Gillitzer, Christian
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Contributor(s): Kleven, Henrik Jacobsen | Slemrod, Joel B.
Material type: 
ArticlePublisher: 2017Subject(s): TIPOS DE GRAVAMEN | IMPUESTOS | IMPOSICION OPTIMA | SISTEMA FISCAL
In:
The Scandinavian Journal of Economics v. 119, n. 2, 2017, p. 240-267Summary: Real-world tax legislation assigns goods to different categories of tax rates on the basis ofobservable characteristics, allowing the tax systemto handle a constantly evolving set ofavailable goods. We recast the theory of optimal taxation in the language of characteristics,and we show how to optimally draw lines that delineate tax-rate regimes. Such lines areassociated withnotches in tax liability as a function of characteristics, creating incentivesto introduce goods with new combinations of characteristics in order to reduce tax liability.With a restricted set of tax instruments, such notches are in general part of the second-bestoptimal tax system.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 1376/2017/2 (Browse shelf) | Available | OP 1376/2017/2 |
Disponible también en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Bibliografía. Conclusión.
Real-world tax legislation assigns goods to different categories of tax rates on the basis ofobservable characteristics, allowing the tax systemto handle a constantly evolving set ofavailable goods. We recast the theory of optimal taxation in the language of characteristics,and we show how to optimally draw lines that delineate tax-rate regimes. Such lines areassociated withnotches in tax liability as a function of characteristics, creating incentivesto introduce goods with new combinations of characteristics in order to reduce tax liability.With a restricted set of tax instruments, such notches are in general part of the second-bestoptimal tax system.
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