Using Elasticities to Derive Optimal Income Tax Rates：（利用弹性推导最优所得税税率）.pdfVIP

Review of Economic Studies (2001) 68, 205–229 0034-65270100100205$02.00  2001 The Review of Economic Studies Limited Using Elasticities to Derive Optimal Income Tax Rates EMMANUEL SAEZ Harûard Uniûersity and NBER First ûersion receiûed June 1999; final ûersion accepted May 2000 (Eds.) This paper derives optimal income tax formulas using compensated and uncompensated elasticities of earnings with respect to tax rates. A simple formula for the high income optimal tax rate is obtained as a function of these elasticities and the thickness of the top tail of the income distribution. In the general non-linear income tax problem, this method using elasticities shows precisely how the different economic effects come into play and which are the key relevant param- eters in the optimal income tax formulas of Mirrlees. The optimal non-linear tax rate formulas are expressed in terms of elasticities and the shape of the income distribution. These formulas are implemented numerically using empirical earning distributions and a range of realistic elasticity parameters. 1. INTRODUCTION There is a controversial debate about the degree of progressivity that the income tax should have. This debate is not limited to the economic research area but also attracts much attention in the political sphere and among the public in general. At the centre of the debate lies the equity-efficiency trade-off. Progressivity allows the government to redistribute from rich to poor, but progressive taxation and high marginal tax rates have efficiency costs. High rates may affect the incentives to work and may therefore reduce the tax base, producing large deadweight losses. The modern setup for analysing the equity-efficiency