Arbeitspapier
Optimal top marginal tax rates under income splitting for couples
This paper provides formulas for optimal top marginal tax rates when couples are taxed according to income splitting between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are computed for Germany using a dataset that includes the tax returns of all German top taxpayers. We find that the optimal top marginal tax rate converges to about 2/3 and convergence obtains at income levels that are substantially higher than those currently subject to the actual top tax rate.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeiträge ; No. 2011/21
- Classification
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Wirtschaft
Personal Income, Wealth, and Their Distributions
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Subject
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optimal income taxation
top incomes
German income tax
- Event
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Geistige Schöpfung
- (who)
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Bach, Stefan
Corneo, Giacomo
Steiner, Viktor
- Event
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Veröffentlichung
- (who)
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Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
- (where)
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Berlin
- (when)
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2011
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bach, Stefan
- Corneo, Giacomo
- Steiner, Viktor
- Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
Time of origin
- 2011