Developments in the theory of optimal income taxation with applications to the Hungarian tax system

Arbeitspapier

This paper reviews recent developments in the theory of optimal income taxation and draws two broad conclusions with respect to the Hungarian personal income tax system. The first conclusion is that the optimal top marginal tax rate is likely to be higher, perhaps substantially, than the actual rate. The second conclusion is that the optimal tax burden of earnings near the minimum wage is likely to be lower than the actual tax burden. It is discussed how these results depend on the parameters describing labor-supply behavior, the income distribution, and the redistributive preferences of society.

Object Details

• ISBN: 978-615-5243-73-8
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IEHAS Discussion Papers ; No. MT-DP - 2013/17

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
• Subject: optimal income taxation ; top income tax rate ; Hungary ; emerging markets ; Optimale Besteuerung ; Einkommensteuer ; Steuerpolitik ; Ungarn

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kiss, Áron
• Event: Veröffentlichung
• (who): Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
• (where): Budapest
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/108296
• Last update: 10.03.2025, 11:45 AM CET