Arbeitspapier

Tax Morality and Progressive Wage Tax

We analyze the impact of tax morality on progressive income (wage) taxation. We assume that transfers (cash-back) and public expenditures are financed from linear wage taxes. We derive the reported wages from individual utility maximization, when individuals obtain partial satisfaction from reporting wages (depending on their tax morality), and cannot be excluded from the use of public services. The government maximizes a utilitarian social welfare function, also taking into account the utility of public services. The major conjecture is illustrated by numerical examples: the optimal degree of redistribution and the size of the public services are increasing functions of the individuals' tax morality.

ISBN
978-963-9796-92-8
Sprache
Englisch

Erschienen in
Series: IEHAS Discussion Papers ; No. MT-DP - 2010/5

Klassifikation
Wirtschaft
Social Security and Public Pensions
Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
Thema
tax moral
reporting earnings
progressive income tax
welfare economics
Steuermoral
Lohnsteuer
Wohlfahrtsökonomik

Ereignis
Geistige Schöpfung
(wer)
Simonovits, András
Ereignis
Veröffentlichung
(wer)
Hungarian Academy of Sciences, Institute of Economics
(wo)
Budapest
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Simonovits, András
  • Hungarian Academy of Sciences, Institute of Economics

Entstanden

  • 2010

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