This paper develops a general theory of optimal income taxation with multiple dimensions of agent heterogeneity. The main technical hurdle in developing this theory is the possibility that individuals have multiple optimal incomes. Using a perturbation approach, optimal tax formulas are derived that account for the possibility that individuals have multiple optima and, hence, account for the possibility that individuals jump between their optimal...
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INFORMACIÓN
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2021/03/08
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Documento de trabajo sobre investigaciones relativas a políticas
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WPS9572
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1
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1
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2021/03/08
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Disclosed
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Optimal Taxation with Multiple Dimensions of Heterogeneity
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optimal tax