For a given vector of tax bracket thresholds and marginal tax rates, this code calculates the tax burden for any vector of incomes. This and other utilities are available on GitHub. function taxdue = tax(y,g) % For a vector of…
For a given vector of tax bracket thresholds and marginal tax rates, this code calculates the tax burden for any vector of incomes. This and other utilities are available on GitHub. function taxdue = tax(y,g) % For a vector of…
Here is my discussion of my attempt to replicate the numerical computations in Mirrlees’s seminal analysis of the optimal nonlinear income tax (Restud, 1971) which can be downloaded here (gated). Although my computations yield reasonable results, they do not exactly replicate…
It’s been widely reported that Romney’s effective tax rate is 13.9%. The low rate is largely because he receives most of his income from investments (stock portfolio appreciation and the like), which are taxed at 15% (a far lower rate…