Politically Feasible Reforms of Nonlinear Tax Systems

S-Tier
Journal: American Economic Review
Year: 2021
Volume: 111
Issue: 1
Pages: 153-91

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study reforms of nonlinear income tax systems from a political economy perspective. We present a median voter theorem for monotonic tax reforms, reforms so that the change in the tax burden is a monotonic function of income. We also provide an empirical analysis of tax reforms, with a focus on the United States. We show that past reforms have, by and large, been monotonic. We also show that support by the median voter was aligned with majority support in the population. Finally, we develop sufficient statistics that enable to test whether a given tax system admits a politically feasible reform.

Technical Details

RePEc Handle
repec:aea:aecrev:v:111:y:2021:i:1:p:153-91
Journal Field
General
Author Count
3
Added to Database
2026-01-24