Asset Markets, Tax Arbitrage, and the Redistributive Properties of Progressive Income Taxation
1988 (English)Report (Other academic)
It is commonly believed that tax arbitrage is anti-egalitarian. The present paper shows that this is not necessarily true; tax arbitrage might actually reduce inequality as well as increase efficiency. It is also shown that the introduction of tax arbitrage will linearize the tax system. Thus complicated, non-linear tax scedules in the spirit of Mirrlees (1971) cannot be sustained.
Place, publisher, year, edition, pages
Stockholm: IIES , 1988. , 33 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 420
IdentifiersURN: urn:nbn:se:su:diva-41607OAI: oai:DiVA.org:su-41607DiVA: diva2:331581