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- W2593199862 abstract "We show that minimum wage earners should pay a lower tax than high earners. Though intuitive, this idea is not supported by the existing literature. The optimal maximin tax curve and two-band taxes are usually decreasing. Since decreasing marginal taxes would be unpopular, by continuity a flat tax seems to be superior to increasing marginal taxes and should be a second best solution. However, using a simple utility function and a general income distribution, we find that lowering the marginal tax for minimum wage earners not only dominates the optimal flat tax under maximin, but also make everyone better off." @default.
- W2593199862 created "2017-03-16" @default.
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- W2593199862 date "2017-02-01" @default.
- W2593199862 modified "2023-09-27" @default.
- W2593199862 title "Lower tax for minimum wage earners" @default.
- W2593199862 hasPublicationYear "2017" @default.
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