Working Paper
The elasticity of taxable income
The elasticity of taxable income is a key tax policy parameter that plays an important role in the formulation of tax and transfer policy. This paper extends work by Kemp (2019) by using a new panel of individual tax returns and the phenomenon of...
Working Paper
How should an optimal tax system react to a crisis?
The COVID-19 pandemic increased public debt and changed the income distribution in many countries. We use a numerical simulation approach to derive optimal nonlinear marginal tax rates for the pre-crisis and crisis periods. We contribute to the...