Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108296
Authors: 
Kiss, Áron
Year of Publication: 
2013
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2013/17
Abstract: 
This paper reviews recent developments in the theory of optimal income taxation and draws two broad conclusions with respect to the Hungarian personal income tax system. The first conclusion is that the optimal top marginal tax rate is likely to be higher, perhaps substantially, than the actual rate. The second conclusion is that the optimal tax burden of earnings near the minimum wage is likely to be lower than the actual tax burden. It is discussed how these results depend on the parameters describing labor-supply behavior, the income distribution, and the redistributive preferences of society.
Subjects: 
optimal income taxation
top income tax rate
Hungary
emerging markets
JEL: 
H21
H24
ISBN: 
978-615-5243-73-8
Document Type: 
Working Paper

Files in This Item:
File
Size
570.47 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.