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English
Cambridge University Press
12 May 2022
Tax policies are informed by principles developed in the tax theory and policy literature. This Element surveys the policy lessons that emerge from optimal tax analysis since the 1970s. This Element begins with the evolution of tax policy principles from the comprehensive income approach to the expenditure tax approach to normative tax analysis based on social welfare maximization and recounts key results from the optimal income tax analysis inspired by Mirrlees and extended by Diamond to the extensive margin approach. This Element also emphasizes analytical techniques that yield empirically relevant concepts and show the equity-efficiency trade-off at the heart of tax policy. We also extend the analysis to recent literature incorporating involuntary unemployment, and policies like welfare and unemployment insurance.

By:   , ,
Imprint:   Cambridge University Press
Country of Publication:   United Kingdom
Edition:   New edition
Dimensions:   Height: 228mm,  Width: 152mm,  Spine: 5mm
Weight:   150g
ISBN:   9781108949453
ISBN 10:   1108949452
Series:   Elements in Public Economics
Pages:   75
Publication Date:  
Audience:   General/trade ,  ELT Advanced
Format:   Paperback
Publisher's Status:   Active
1. Introduction; 2. Evolving principles of tax policy extent of redistribution; 3. Policy implications from optimal tax theory; 4. Extensions to the optimal income tax approach; 5. Estimating the optimal income tax structure; 6. Different labour market environments; 7. Behavourial economics considerations; 8. Summary of policy implications; References.

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