- Agell, Jonas, et al.
Asset Markets, Tax Arbitrage, and the Redistributive Properties of Progressive Income Taxation
Rapport (övrigt vetenskapligt)abstract
- It is commonly believed that tax arbitrage is anti-egalitarian. The present paper shows that this is not necessarily true; tax arbitrage might actually reduce inequality as well as increase efficiency. It is also shown that the introduction of tax arbitrage will linearize the tax system. Thus complicated, non-linear tax scedules in the spirit of Mirrlees (1971) cannot be sustained.