Fair income tax with endogenous productivities and a fresh start
Bibliographic Data
| ID | 12836836 |
|---|---|
| Authors | Aitor Calo-Blanco (0000-0003-3957-4741, Universidade da Coruña, corresponding author) |
| Year | 2021 |
| Volume | 20 |
| Issue | 2 |
| Pages | 395-420 |
| Publication date | 2021-07-30 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Inequality (JOURNAL) |
| Journal identifiers | ISSN: 1569-1721 • E-ISSN: 1573-8701 |
| Publisher | Springer Science+Business Media (PUBLISHER • DE) |
| DOI | 10.1007/s10888-021-09504-8 |
| OpenAlex | W3189516981 |
| Language | EN |
| Citations received | 1 |
| References cited | 27 |
This paper considers a model in which agents have heterogeneous preferences over labour and consumption. Additionally, they also differ in their earning skills, which are a function of both an innate ability and an early investment decision. In this framework we axiomatically derive a social ordering function that, besides compensating agents for their unequal productivities, grants a fresh start to those who regret their initial choices. Next, by assuming a second-best context we characterise the income tax scheme that satisfies this social ordering. This analysis permits us to present an explicit criterion for the assessment of social welfare under different tax policies. We obtain that the optimal scheme aims to compensate those endowed with the lowest marginal productivity. More importantly, on account of the forgiveness ideal positive social marginal weights are assigned to those who earn the lowest income levels, something that induces a progressivity tendency at the bottom of the earnings distribution
Consumption (sociology · Context (archaeology · Distribution (mathematics · Earnings · Economics · Function (biology · Income tax · Investment (military · Labour economics · Microeconomics · Optimal tax · Public economics · Regret · Social welfare function · Welfare · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics · Mathematics · Taxation and Compliance Studies
A Theory of Fairness and Social Welfare
Equity and the Informational Basis of Collective Choice
An Exploration in the Theory of Optimum Income Taxation
A Theory of Justice
Equality and equal opportunity for welfare
Sovereign Virtue Revisited
On the Currency of Egalitarian Justice
What is Equality? Part 1
Fairness, Responsibility, and Welfare
Responsibility sensitive egalitarianism and optimal linear income taxation
Optimal Taxation and Human Capital Policies over the Life Cycle
Is it Fair to ‘Make Work Pay’
Freedom with forgiveness
| Citations per year | 0.5 |
|---|---|
| Citation span | 2024 - 2024 (1) |
| Highly cited | No |