Economics seminars - Claudio Zoli

Economics seminars

Dear all,

You are cordially invited to the following seminar co-organized by CERPE, CRED and CEREFIM at the Department of Economics in Namur.

Hope to see you all,

"Optimal Non-Welfarist Income Taxation for Inequality and Polarization Reduction"

Speaker:  Claudio Zoli

(University of Verona)

Date and time: Tuesday, February 5, 2019 at 4pm

Room E43, Rempart de la Vierge 8, Namur

Abstract

We characterize the property of an optimal 3 bracket piecewise linear tax system adopting a non-welfarist objective, namely we consider inequality and income polarization reduction objectives. When the elasticity of labour supply is positive, the optimal tax schedule always entails an inverse U-shape relationship between marginal tax rates and income brackets. However, quantitatively, there are striking di⁄erences in the optimal tax schedule depending on the specic distributive objective. When the objective is inequality, the last bracket includes few tax payers (about the 98th percentile) and implies marginal tax rates well above zero. When the objective is polarization the third bracket includes a larger amount of tax payers (about the top quartile) and entails a marginal tax rate equal to zero. In special case in which the elasticity of labor supply is equal to zero, the optimal tax scheme when the objective of the government is inequality reduction has only two brackets, with a marginal tax rate equal to zero for the rst bracket. 

Other seminars: http://defipp.unamur.be/seminars

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