Revenue-Maximising Tax Rates in Personal Income Taxation in the Presence of Consumption Taxes: A note

Sanz-Sanz, José Félix2015-04-222022-07-072015-04-222022-07-0720152015https://ir.wgtn.ac.nz/handle/123456789/19275This note computes revenue-maximising tax rates in personal income taxes in the presence of consumption taxes. It finds that the traditional Laffer analysis, which neglects the effects of marginal tax rates on consumption, overestimates the magnitude of revenue-maximising tax rates. The bias caused by this oversight is computed.pdfen-NZMarginal tax ratesLaffer curveConsumption taxesTax revenueTax behaviourRevenue-Maximising Tax Rates in Personal Income Taxation in the Presence of Consumption Taxes: A noteTextwww.victoria.ac.nz/sacl/about/cpf