Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98962
Authors: 
Andrienko, Yuri
Apps, Patricia
Rees, Ray
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8275
Abstract: 
In a number of high-income countries over the past few decades there has been a large growth in income inequality and at the same time a shift in the burden of taxation from the top to the middle of the income distribution. This paper applies the theory of optimal piecewise linear taxation to the issue of the taxation of top incomes. Our results suggest that an appropriate response to rising inequality is a shift towards a more progressive multi-bracket income tax system, with a more differentiated structure of rates in the top percentiles.
Subjects: 
optimal taxation
income distribution
top incomes
inequality
JEL: 
H21
H24
D31
D63
Document Type: 
Working Paper

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