This paper analyzes optimal progressive capital income taxation in the infinite horizon dynastic model. It shows that progressive taxation is a much more powerful and useful tool to redistribute wealth than linear taxation on which previous literature has focused. We consider progressive capital income tax schedules taking a simple two-bracket form with an exemption bracket at the bottom and a ...

An environmental fiscal reform (EFR) represents a transition of a taxation system toward one based in environmental taxation, rather than on taxation of capital, labor, or consumption. It differs from an environmental tax reform (ETR) in that an EFR also includes a reform of subsidies which counteract environmental policy. This research details different ways in which an EFR is not only possibl...

BACKGROUND In Bangladesh, the average excise tax on cigarettes accounted for just 38% of the average retail price of cigarettes in 2009, and 45% in 2010. Both these rates are well below the WHO recommended share of 70% of the retail price at a minimum. There is thus ample room for raising taxes on cigarettes in Bangladesh. The objective of the present work was therefore to estimate the price el...

This paper studies capital accumulation and consumption in the traditional Ramsey model under an exogenous growth framework. The model has three important features: (1) treating health as a simple function of consumption, which enable the study of health and growth in an aggregate macroeconomic model; (2) the existence of multiple equilibria of capital stock, health, and consumption, which is m...

This paper studies optimum income taxation in a small open economy where households differ with respect to their endowments with wealth. The government raises taxes on income from labor and wealth and a source tax on capital used in domestic production. To avoid taxes, households may, at some cost, shift capital to labor income and vice versa. The government can only observe income after shifti...

Alfred Schütz’s 1927 essay on capital income taxation is examined in the contexts of the evolution of the German progressive income tax, the fiscal and monetary crises of the time, and Schütz’s relationship to the Austrian school of economics. JEL classification: B3.