Optimal Taxation with Workforce: The Role of Bunching
|Speaker:||Craig Brett, University of Warwick|
|Date:||Friday 19 May 2000|
|Location:||Room 106 Streatam Court|
This paper explores the use of workfare as part of the optimal tax mix. When agents have preferences that are quasi-linear in leisure, unproductive workfare is optimal only if it is optimal for taxpayers of different types to be bunched at the optimum.