Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306640 
Authors: 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 984
Publisher: 
Queen Mary University of London, School of Economics and Finance, London
Abstract: 
I investigate numerically the following question: Given that individuals with different wages disagree over the optimal labour-income tax schedule, how would such disagreements be affected if society restricted itself to using linear tax schedules? I find that there would be (i) a decrease in disagreements within a large segment of the population at the top of the wage distribution, (ii) a sharp decrease in how much a very-high-wage individual disagrees with individuals whose wage is weakly above the median but sufficiently far below her wage, (iii) a sharp decrease in how much a zero-wage individual disagrees with a median-wage individual, and (iv) a decrease in how much a zero-wage individual disagrees with high-wage individuals.
Subjects: 
labour-income tax
linear tax
redistribution
conflict
JEL: 
D70
D72
D74
H20
Document Type: 
Working Paper

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