In most countries, average income varies with age. In this paper we investigate if and how it is possible to enhance the redistributive mechanism by relating tax payments to age. Using an OLG model where some individuals are low skilled all their life while others are low skilled when young but high skilled when old, we first show how an age dependent optimal income tax can Pareto improve upon an age independent income tax. We then characterize the optimal age dependent income tax. A tax on interest income is part of the optimal tax structure.
|Titolo:||Age-related optimal income taxation|
|Autori interni:||MICHELETTO, LUCA (Ultimo)|
|Parole Chiave:||Age-specific taxes; Optimal taxation; Tagging|
|Settore Scientifico Disciplinare:||Settore SECS-P/03 - Scienza delle Finanze|
|Data di pubblicazione:||2008|
|Digital Object Identifier (DOI):||10.1111/j.1467-9442.2008.00524.x|
|Appare nelle tipologie:||01 - Articolo su periodico|