Tag Archives: federal income taxes

Desirable incentive effects of income taxation I Desirable Incentive Effects of Income Taxation II Desirable Incentive Effects of Income Taxation III Desirable Effects of Income Taxation IV Dissipative Signaling Desirable incentive effects of income taxation V Debt and Taxes I Debt and Taxes II Debt and Taxes III Tags: federal income taxes...

Desirable incentive effects of income taxation I Desirable Incentive Effects of Income Taxation II Desirable Incentive Effects of Income Taxation III Desirable Effects of Income Taxation IV Dissipative Signaling Desirable incentive effects of income taxation V Debt and Taxes I Debt and Taxes II Debt and Taxes III Debt and Taxes IV: This Time It’s Personal ...

Fifth and last. Not relevant to the USA. Back in the day when US unions weren’t totally feeble, MacDonald and Solow wrote a brilliant paper on collective bargaining and tax based incomes policy. Imagine a world in which firms must negotiation with unions (for example imagine Europe). The unions have two aims — they want high wages and they want high employment in the sector they represent. This means that a GM&UAW right to manage contract...

Fifth and last. Not relevant to the USA. Back in the day when US unions weren’t totally feeble, MacDonald and Solow wrote a brilliant paper on collective bargaining and tax based incomes policy. Imagine a world in which firms must negotiation with unions (for example imagine Europe). The unions have two aims — they want high wages and they want high employment in the sector they represent. This means that a GM&UAW right to manage contract...

This is the second post in a series. I will discuss advantages of income taxation different from the obvious advantage that taking from people with high income hurts them less than taking from people with low income. Here again, I will assume that, in equilibrium, income tax is returned to the people who pay it as a lump sum. I do this to focus on the incentive effects of income taxation. In standard models, these effects are undesirable and...

Cases in which income taxation is preferable to lump sum taxation with the same ex post net transfers. The main reason for progressive taxation is that the welfare cost of taking money from wealthy people is lower, because they have a lower marginal utility of consumption. I would like to discuss other advantages of income taxation, that is cases in which it can cause an increase in money metric welfare, or, in other words cases in which a...