Skip to content

From Optimal Tax Theory to Tax Policy Retrospective and Prospective Views

ISBN-10: 0262017113

ISBN-13: 9780262017114

Edition: 2012

Authors: Robin W. Boadway

List price: $45.00
Blue ribbon 30 day, 100% satisfaction guarantee!
Buy eBooks
what's this?
Rush Rewards U
Members Receive:
Carrot Coin icon
XP icon
You have reached 400 XP and carrot coins. That is the daily max!

Description:

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 book, Robin Boadway examines the role of optimal tax analysis in informing and influencing tax policy design. Scholars of public economics formulate models of optimal tax-transfer systems based on normative principles that reflect efficiency and equity considerations. They use that analysis to form views about the optimal design or reform of actual tax systems that are much more complicated than their models. Boadway argues that there is an important symbiosis between ideas drawn from normative tax analysis and tax policies actually enacted. Ideas germinated by normative analyses have led to the widespread adoption of the value-added tax, the use of refundable tax credits, and various business tax reforms. Other ideas provide rationales for existing features of tax systems, including the tax treatment of retirement savings and human capital investment. Boadway charts the evolution of optimal tax analysis and discusses the lessons it holds for tax policy. He describes the theoretical challenges posed by recent findings in such fields as behavioral economics and social choice and considers how optimal tax analysis might adapt to these new paradigms. His analysis offers a timely assessment of the role that optimal tax theory has played in establishing the principles that continue to inform tax policy.
Customers also bought

Book details

List price: $45.00
Copyright year: 2012
Publisher: MIT Press
Publication date: 1/27/2012
Binding: Hardcover
Pages: 288
Size: 6.50" wide x 9.25" long x 0.75" tall
Weight: 1.232
Language: English

Series Foreword
Acknowledgments
Introduction
From Tax Theory to Policy: An Overview
Landmarks of Optimal Tax Theory
The Evolution of Policy and Advice
Challenges for the Theory of Tax Policy
Commitment
Heterogeneity of Individual Utility Functions
Behavioral Issues
Responsibility and Compensation
Political Economy
Optimal Analysis versus Reform Analysis
Summary of Lessons for Tax Policy
Policy Lessons from Optimal Tax Theory
Uniformity of Commodity Taxes
The Corlett-Hague Theorem
The Atkinson-Stiglitz Theorem
Production Efficiency: Implications and Caveats
Capital Taxation and the Personal Tax Base
Linear Taxation in a Dynamic Setting
Nonlinear Taxation in a Dynamic Setting
The Issue of Progressivity
Asymmetric Information and Market Failure
Policy Lessons from Normative Analysis
Uniform Broad-Based Commodity Taxation
Production Efficient Taxation
Taxation of Asset Income
Progressivity
Business Taxation
Relaxing the Second-Best Constraints
The Use of Supplementary Policy Instruments
Differential Commodity Taxes
Public Goods and the Marginal Cost of Public Funds
Quantity Controls: In-kind Transfers
Price Controls
Workfare
Other Issues Affecting Instrument Choice
Making Use of, and Acquiring, More Information
Tagging
Monitoring
Conclusions
Challenges for Second-Best Analysis
Fundamentals of the Standard Approach
The Commitment Issue
Heterogeneous Preferences and Utility
Needs
Disutility of Work
Other Dimensions of Taste Differences
Interdependent Utilities
Dealing with Differences in Preferences: One Proposed Approach
Behavioral Issues
Bounded Rationality
Irrational Choices
Nonselfish Choices
Happiness
Political Economy
Concluding Comments
References
Index