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http://hdl.handle.net/10419/54723
  
Title:Optimal top marginal tax rates under income splitting for couples PDF Logo
Authors:Bach, Stefan
Corneo, Giacomo
Steiner, Viktor
Issue Date:2011
Series/Report no.:School of Business & Economics Discussion Paper: Economics 2011/21
Abstract:This paper provides formulas for optimal top marginal tax rates when couples are taxed according to income splitting between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are computed for Germany using a dataset that includes the tax returns of all German top taxpayers. We find that the optimal top marginal tax rate converges to about 2/3 and convergence obtains at income levels that are substantially higher than those currently subject to the actual top tax rate.
Subjects:optimal income taxation
top incomes
German income tax
JEL:D31
D72
H23
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin
Publikationen von Forscherinnen und Forschern des DIW

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