How to Tax Different Incomes?

Optimal Marginal Tax Rates for Low Incomes:

Previous studies have shown that the optimal marginal tax rate at the bottom of the income distribution may be positive, negative, or even zero. This paper reexamines this problem in a unified framework and tries to evaluate the arguments. It turns out that the case for positive marginal tax rates is quite strong, whereas negative marginal tax rates seem to be based on a misconception.

How Unequal Should Incomes Be?

How to Tax the Rich

As a purely practical matter, raising taxes for the richest Americans is harder than it might seem. Several options that have received considerable attention and some support either would not raise much revenue or are unadministrable (or close to it). Much of the problem comes down to the challenge of taxing capital. In particular, increasing the tax rate on capital gains income is problematic ...

Sales Tax on the Internet: When and How to Tax?

As a first attempt to tax electronic commerce, many countries applied the existing tax laws to Internet. However, applying these laws to border-spanning electronic commerce proved very inefficient and inappropriate. While some authorities claim not taxing the Internet is the best solution for encouraging the growth of electronic commerce, we believe that use and sales taxes in general are an im...

How to survive a tax audit.