Inequality and Optimal Redistributive Tax and Transfer Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inequality and Optimal Redistributive Tax and Transfer Policies write by Mr.Howell H. Zee. This book was released on 1999-04-01. Inequality and Optimal Redistributive Tax and Transfer Policies available in PDF, EPUB and Kindle. This paper explores the revenue-raising aspect of progressive taxation and derives, on the basis of a simple model, the optimal degree of tax progressivity where the tax revenue is used exclusively to finance (perfectly) targeted transfers to the poor. The paper shows that not only would it be optimal to finance the targeted transfers with progressive taxation, but that the optimal progressivity increases unambiguously with growing income inequality. This conclusion holds up under different assumptions about the efficiency cost of taxation and society’s aversion to inequality.
Optimal Redistributive Taxation
Optimal Redistributive Taxation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Optimal Redistributive Taxation write by Matti Tuomala. This book was released on 2016-01-21. Optimal Redistributive Taxation available in PDF, EPUB and Kindle. Tax systems raise large amounts of revenue for funding public sector's activities, and tax/transfer policy, together with public provision of education, health care, and social services, play a crucial role in treating the symptoms and the causes of poverty. The normative analysis is crucial for tax/transfer design because it makes it possible to assess separately how changes in the redistributive criterion of the government, and changes in the size of the behavioural responses to taxes and transfers, affect the optimal tax/transfer system. Optimal tax theory provides a way of thinking rigorously about these trade-offs. Written primarily for graduate students and researchers, this volume is intended as a textbook and research monograph, connecting optimal tax theory to tax policy. It comments on some policy recommendations of the Mirrlees Review, and builds on the authors work on public economics, optimal tax theory, behavioural public economics, and income inequality. The book explains in depth the Mirrlees model and presents various extensions of it. The first set of extensions considers changing the preferences for consumption and work: behavioural-economic modifications (such as positional externalities, prospect theory, paternalism, myopic behaviour and habit formation) but also heterogeneous work preferences (besides differences in earnings ability). The second set of modifications concerns the objective of the government. The book explains the differences in optimal redistributive tax systems when governments - instead of maximising social welfare - minimise poverty or maximise social welfare based on rank order or charitable conservatism social welfare functions. The third set of extensions considers extending the Mirrlees income tax framework to allow for differential commodity taxes, capital income taxation, public goods provision, public provision of private goods, and taxation commodities that generate externalities. The fourth set of extensions considers incorporating a number of important real-word extensions such as tagging of tax schedules to certain groups of tax payers. In all extensions, the book illustrates the main mechanisms using advanced numerical simulations.
Redistribution, Inequality, and Growth
Redistribution, Inequality, and Growth - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Redistribution, Inequality, and Growth write by Mr.Jonathan David Ostry. This book was released on 2014-02-17. Redistribution, Inequality, and Growth available in PDF, EPUB and Kindle. The Fund has recognized in recent years that one cannot separate issues of economic growth and stability on one hand and equality on the other. Indeed, there is a strong case for considering inequality and an inability to sustain economic growth as two sides of the same coin. Central to the Fund’s mandate is providing advice that will enable members’ economies to grow on a sustained basis. But the Fund has rightly been cautious about recommending the use of redistributive policies given that such policies may themselves undercut economic efficiency and the prospects for sustained growth (the so-called “leaky bucket” hypothesis written about by the famous Yale economist Arthur Okun in the 1970s). This SDN follows up the previous SDN on inequality and growth by focusing on the role of redistribution. It finds that, from the perspective of the best available macroeconomic data, there is not a lot of evidence that redistribution has in fact undercut economic growth (except in extreme cases). One should be careful not to assume therefore—as Okun and others have—that there is a big tradeoff between redistribution and growth. The best available macroeconomic data do not support such a conclusion.
Policies for Redistribution
Policies for Redistribution - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Policies for Redistribution write by Naren Prasad. This book was released on 2014. Policies for Redistribution available in PDF, EPUB and Kindle. Inequality can be addressed through a combination of social service provision, social transfers and taxation. Looking at the past two decades, this paper examines the extent to which inequality has been affected by changes in national tax systems and government expenditure on social transfers. Using secondary data, this paper discusses the trends in the composition and levels of social transfers and taxes, and explores how these trends relate to income inequality. It also looks into the extent to which taxes and social transfers are effective in redistributing income. And finally it shows how different government policy frameworks have been able to limit growth in income inequality and at the same time foster economic growth and job creation.
Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers
Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers write by Mr.David Coady. This book was released on 2020-06-26. Designing Fiscal Redistribution: The Role of Universal and Targeted Transfers available in PDF, EPUB and Kindle. There is a growing debate on the relative merits of universal and targeted social assistance transfers in achieving income redistribution objectives. While the benefits of targeting are clear, i.e., a larger poverty impact for a given transfer budget or lower fiscal cost for a given poverty impact, in practice targeting also comes with various costs, including incentive, administrative, social and political costs. The appropriate balance between targeted and universal transfers will therefore depend on how countries decide to trade-off these costs and benefits as well as on the potential for redistribution through taxes. This paper discusses the trade-offs that arise in different country contexts and the potential for strengthening fiscal redistribution in advanced and developing countries, including through expanding transfer coverage and progressive tax financing.
