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The optimal progressive income tax : The existence and the limit tax rates

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  • Kaneko, Mamoru

Abstract

The purpose of this paper is to consider the problem of optimal income taxation in the domain of progressive (convex) income tax function. This paper proves the existence of an optimal tax function and that the optimal marginal and average tax rates tend asymptotically to 100 percent as income level becomes arbitrarily high.
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  • Kaneko, Mamoru, 1982. "The optimal progressive income tax : The existence and the limit tax rates," Mathematical Social Sciences, Elsevier, vol. 3(2), pages 193-221, September.
    • Handle: RePEc:eee:matsoc:v:3:y:1982:i:2:p:193-221
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    References listed on IDEAS

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    1. Kesselman, Jonathan R., 1976. "Egalitarianism of earnings and income taxes," Journal of Public Economics, Elsevier, vol. 5(3-4), pages 285-301.
    2. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    3. Aumann, Robert J., 1977. "The St. Petersburg paradox: A discussion of some recent comments," Journal of Economic Theory, Elsevier, vol. 14(2), pages 443-445, April.
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    6. Kim, Ki Hang & Roush, Fred W., 1981. "Economic planning based on social preference functions," Mathematical Social Sciences, Elsevier, vol. 1(2), pages 193-200, January.
    7. Ray C. Fair, 1971. "The Optimal Distribution of Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(4), pages 551-579.
    8. Ordover, J. A. & Phelps, E. S., 1979. "The concept of optimal taxation in the overlapping-generations model of capital and wealth," Journal of Public Economics, Elsevier, vol. 12(1), pages 1-26, August.
    9. Feldstein, Martin, 1973. "On the optimal progressivity of the income tax," Journal of Public Economics, Elsevier, vol. 2(4), pages 357-376.
    10. Kaneko, Mamoru, 1981. "The Nash social welfare function for a measure space of individuals," Journal of Mathematical Economics, Elsevier, vol. 8(2), pages 173-200, July.
    11. Kaneko, Mamoru & Nakamura, Kenjiro, 1979. "The Nash Social Welfare Function," Econometrica, Econometric Society, vol. 47(2), pages 423-435, March.
    12. Mamoru Kaneko, 1981. "On the Existence of an Optimal Income Tax Schedule," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 633-642.
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    Cited by:

    1. Ruiz del Portal, X., 2010. "On the qualitative properties of the optimal income tax," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 288-298, May.
    2. Dennis Ridley & Cartreal Davison, 2022. "Optimal Tax Rate for Maximal Revenue Generation," Technium Social Sciences Journal, Technium Science, vol. 29(1), pages 271-284, March.

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