Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339426 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
Working Paper No. 990
Publisher: 
Queen Mary University of London, School of Economics and Finance, London
Abstract: 
I take a simple model of affine taxation of labour income and append to it the possibility that the chosen tax schedule triggers conflict in society. I demonstrate theoretically that, under certain conditions, the set of efficient tax schedules is a proper subset of the set of efficient tax schedules in a standard model without the possibility of conflict. Then, calibrating the model to the United States, I show numerically that the former set is much smaller than the latter.
Subjects: 
labour-income tax
redistribution
conflict
JEL: 
D74
H20
H21
Document Type: 
Working Paper

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