From optimal tax theory to tax policy : retrospective and prospective views / Robin Boadway.

Format:

Book

Author/Creator:

Boadway, Robin W., 1943- author.

Series:

Munich lectures in economics

Language:

English

Subjects (All):

Taxation.

Fiscal policy.

Physical Description:

1 online resource (vi, 290 pages) : illustrations.

Place of Publication:

Cambridge, Mass. : MIT Press, [2012]

System Details:

text file

Summary:

Many things inform a country's choice of tax system, including political considerations, public opinion, bureaucratic complexities, and ideas drawn from theoretical analysis. In this work, Robin Boadway examines the role of optimal tax analysis in informing and influencing tax policy design.

Contents:

1 Introduction 1

2 From Tax Theory to Policy: An Overview 7

2.1 Landmarks of Optimal Tax Theory 7

2.2 The Evolution of Policy and Advice 16

2.3 Challenges for the Theory of Tax Policy 26

2.3.1 Commitment 26

2.3.2 Heterogeneity of Individual Utility Functions 30

2.3.3 Behavioral Issues 34

2.3.4 Responsibility and Compensation 37

2.3.5 Political Economy 38

2.4 Optimal Analysis versus Reform Analysis 40

2.5 Summary of Lessons for Tax Policy 44

3 Policy Lessons from Optimal Tax Theory 47

3.1 Uniformity of Commodity Taxes 51

3.1.1 The Corlett-Hague Theorem 51

3.1.2 The Atkinson-Stiglitz Theorem 58

3.2 Production Efficiency: Implications and Caveats 77

3.3 Capital Taxation and the Personal Tax Base 85

3.3.1 Linear Taxation in a Dynamic Setting 86

3.3.2 Nonlinear Taxation in a Dynamic Setting 95

3.4 The Issue of Progressivity 106

3.5 Asymmetric Information and Market Failure 124

3.6 Policy Lessons from Normative Analysis 133

3.6.1 Uniform Broad-Based Commodity Taxation 134

3.6.2 Production Efficient Taxation 135

3.6.3 Taxation of Asset Income 135

3.6.4 Progressivity 136

3.6.5 Business Taxation 137

4 Relaxing the Second-Best Constraints 139

4.1 The Use of Supplementary Policy Instruments 143

4.1.1 Differential Commodity Taxes 144

4.1.2 Public Goods and the Marginal Cost of Public Funds 146

4.1.3 Quantity Controls: In-kind Transfers 148

4.1.4 Price Controls 153

4.1.5 Workfare 157

4.1.6 Other Issues Affecting Instrument Choice 162

4.2 Making Use of, and Acquiring, More Information 168

4.2.2 Tagging 169

4.2.2 Monitoring 174

4.3 Conclusions 182

5 Challenges for Second-Best Analysis 185

5.1 Fundamentals of the Standard Approach 185

5.2 The Commitment Issue 193

5.3 Heterogeneous Preferences and Utility 199

5.3.1 Needs 201

5.3.2 Disutility of Work 202

5.3.3 Other Dimensions of Taste Differences 204

5.3.4 Interdependent Utilities 205

5.3.5 Dealing with Differences in Preferences: One Proposed Approach 212

5.4 Behavioral Issues 217

5.4.2 Bounded Rationality 218

5.4.2 Irrational Choices 220

5.4.3 Nonselfish Choices 225

5.4.4 Happiness 228

5.5 Political Economy 229

5.6 Concluding Comments 239.

Notes:

OCLC-licensed vendor bibliographic record.

ISBN:

9780262301688

0262301687

9786613594266

6613594261

OCLC:

776202124

Publisher Number:

9786613594266

Access Restriction:

Restricted for use by site license.