Optimal top marginal tax rates under income splitting for couples
Bach, Stefan ;  Corneo, Giacomo ;  Steiner, Viktor ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleOptimal top marginal tax rates under income splitting for couples
AuthorBach, Stefan
AuthorCorneo, Giacomo
AuthorSteiner, Viktor
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages24 S.
Series ; 2011,21 : Economics
KeywordsOptimal income taxation; Top incomes; German income tax
Classification (DDC)336 Public finance
AbstractThis paper provides formulas for optimal top marginal tax rates when couples are
taxed according to income splitting between spouses, consumption is taxed, and the skill distribution is unbounded. Optimal top marginal income tax rates are computed for
Germany using a dataset that includes the tax returns of all German top taxpayers. We
find that the optimal top marginal tax rate converges to about 2/3 and convergence
obtains at income levels that are substantially higher than those currently subject to the actual top tax rate.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Institut für Wirtschaftspolitik und Wirtschaftsgeschichte / Institut für Öffentliche Finanzen und Sozialpolitik
Year of publication2011
Type of documentBook
Terms of use/Rights Nutzungsbedingungen
Created at2011-12-14 : 02:10:25
Last changed2015-05-21 : 11:53:13
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000012617