期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2011
卷号：2011
期号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：The Atki nson - Stiglitz Theorem shows that with weakly separable preferences,
differential commod- ity taxes are not needed if an optimal nonlinear income tax is
imposed. Redistributive objectives can be achieved with the income tax alone even
if goods differ consid erably in their income elasticities of demand. Deaton showed
that if the government is restricted to a linear progressive income tax along with
commodity taxes, the latter are superfluous if preferences are not only weakly
separable but also yield linear Engel curves whose slopes are common to all
households. These have potentially strong policy implications since they suggest
that the common practice of giving preferential commodity tax treatment to
necessities is not warranted. Using the linear progressive income tax as an example
and assuming the Deaton conditions are satisfied, we derive two contradictory
results. First, if the income tax is less progressive than optimal, necessities should
be taxed preferentially relative to luxuries. Second, if low - income households are
income - constrained so are unable to afford any luxury goods, it may be optimal to
tax necessity goods at higher rates than luxuries, depending on whether labor
supply varies along the intensive or extensive margin. The analysis is extend ed to
allow for nonlinear taxes and endogenous demand for a public good.
