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Comments on Social Insurance and the Optimum Piecewise Linear Income Tax

Author

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  • Lundholm, Michael

    (Dept. of Economics, Stockholm University)

Abstract

Using Varian´s social insurance framework with a piecewise linear two bracket income tax, where t_1 is the tax rate in the lower bracket and t_1+t_2 is the tax rate in the upper bracket, Strawcynski (1998) claims that optimal requires t_1^*

Suggested Citation

  • Lundholm, Michael, 1999. "Comments on Social Insurance and the Optimum Piecewise Linear Income Tax," Research Papers in Economics 1999:8, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:1999_0008
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    File URL: http://www2.ne.su.se/paper/wp99_08.pdf
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    References listed on IDEAS

    as
    1. Lundholm, M., 1991. "Note on the Shape of the Optimum Income Tax Schedule : A Correction and a Comment," Papers 1991h, Uppsala - Working Paper Series.
    2. Slemrod, Joel & Yitzhaki, Shlomo & Mayshar, Joram & Lundholm, Michael, 1994. "The optimal two-bracket linear income tax," Journal of Public Economics, Elsevier, vol. 53(2), pages 269-290, February.
    3. Sheshinski, Eytan, 1989. "Note on the shape of the optimum income tax schedule," Journal of Public Economics, Elsevier, vol. 40(2), pages 201-215, November.
    4. Strawczynski, Michel, 1998. "Social insurance and the optimum piecewise linear income tax," Journal of Public Economics, Elsevier, vol. 69(3), pages 371-388, September.
    5. Varian, Hal R., 1980. "Redistributive taxation as social insurance," Journal of Public Economics, Elsevier, vol. 14(1), pages 49-68, August.
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    More about this item

    Keywords

    Optimal taxation; social insurance; piecewise linear taxes;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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