Research Report Optimal Taxation
From The Encyclopedia of Taxation and Tax Policy
William M. Gentry
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Optimal taxation is a set of normative prescriptions for tax policy usually based on maximizing social welfare for a given revenue requirement. Optimal tax theory addresses such questions as: Should the government use income or commodity taxes? Within commodity taxes, how should tax rates vary across commodities? How progressive should the tax system be? Optimal tax theory encompasses a range of models that focus on particular aspects of the tax system.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy Individual taxes Federal budget and economy Campaigns, proposals, and reforms Income and wealth distribution Federal tax issues and reform proposals
Policy Centers Income and Benefits Policy Center