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- W2201711700 abstract "We quantitatively investigate the capacity to collect revenue when the government is constrained to use non-linear (progressive) income taxes. We develop a life-cycle growth model with individual heterogeneity and endogenous labor supply, and explore the degree of tax progressivity that can be sustained in order to finance different levels of government consumption across steady-state equilibria. We find that for the current tax structure of the U.S., the government can increase revenues by adopting a flatter tax schedule. We also find that the revenue-maximizing level of progressivity declines as required government revenues increase." @default.
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- W2201711700 date "2013-01-01" @default.
- W2201711700 modified "2023-09-23" @default.
- W2201711700 title "Heterogeneity and Government Revenues: Does Tax Progressivity Matter?" @default.
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