17
Public Finance and Public Policy First Edition Chapter 20: Tax Inefficiencies and Their Implications for Optimal Taxation Copyright © 2005 by Worth Publishers Jonathan Gruber

Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Embed Size (px)

Citation preview

Page 1: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Public Finance and Public PolicyFirst Edition

Chapter 20:Tax Inefficiencies and Their Implications

for Optimal Taxation

Copyright © 2005 by Worth Publishers

Jonathan Gruber

Page 2: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.1 Deadweight Loss of a TaxGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 3: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.2 Deadweight Loss Rises with ElasticitiesGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 4: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.3 Marginal Deadweight Loss Rises with Tax RateGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 5: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.4 Preexisting Distortions MatterGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 6: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.5 (a, b) Low Rates Imposed on a Broad Base Are DesirableGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 7: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.5 (c) Low Rates Imposed on a Broad Base Are DesirableGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 8: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.6 (a) Efficiency Consequences of Subsidies and Taxes in PakistanGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 9: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.6 (b) Efficiency Consequences of Subsidies and Taxes in PakistanGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 10: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.6 (c) Efficiency Consequences of Subsidies and Taxes in PakistanGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 11: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Table 20.1Gruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 12: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.7 The Laffer CurveGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 13: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.8 Optimal Income TaxationGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 14: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.9 (a) Simulations of Optimal Nonlinear Income Tax RatesGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 15: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.9 (b) Simulations of Optimal Nonlinear Income Tax RatesGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 16: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.10 Tax-Benefit LinkagesGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers

Page 17: Public Finance and Public Policy - MITweb.mit.edu/14.41/www/ch20.pdf · Title: Microsoft PowerPoint - ch20.ppt Author: clsmith Created Date: 12/2/2005 3:15:39 PMAuthors: Jonathan

Figure 20.11 Taxation with No Deadweight Loss Due to LinkagesGruber: Public Finance and Public Policy, First EditionCopyright © 2005 by Worth Publishers