Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39710
Authors: 
Wrede, Matthias
Year of Publication: 
1999
Series/Report no.: 
BERG working paper series on government and growth 33
Abstract: 
This paper proposes the question whether or not traveling expenses to work should be deductible from the income tax base. In order to answer this question, a simple model of (im-) perfect household and worker mobility is employed. The focus of the analysis is on the efficient use of land and the efficient allocation of people and labor in a multi-region framework. The paper shows that deductibility is inefficient only if households are perfectly mobile and if households cannot choose their place of work. If the region of work is not exogenously fixed, traveling expenses to work should be deductible at more than one hundred percent, even if households choose simultaneously the place of work and the region of residence, and even if tax rates are not standardized within the federation.
Subjects: 
income taxation
reliefs
household mobility
labor mobility
raveling expenses to work
optimum taxation
JEL: 
H21
H24
J61
ISBN: 
393105215X
Document Type: 
Working Paper

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