Tax Theory and Targeting: A Survey Bradbury, Bruce en_US 2021-11-25T12:34:32Z 2021-11-25T12:34:32Z 1999 en_US
dc.description.abstract In many countries, the targeting of income transfer schemes leads to a very high effective marginal tax rate on private income. How can the equity goals associated with targeting be made consistent with the maintenance of labour supply incentives? This paper reviews the inevitable trade-offs facing income-tested tax-transfer systems, and then goes on to examine the conclusions of a growing body of economic analysis of these questions. This analysis, growing out of the literature on ‘optimal income taxation' seeks to provide a framework for a balancing of the conflicting efficiency and equity issues involved in income-based redistribution. Though existing research is not able to provide firm guidelines to policy, there are valuable insights - particularly from research that has begun to incorporate the administrative features of programs. These have major implications for the structure of income testing. Insofar as activity testing increases labour supply, one might argue for the use of a higher benefit withdrawal rate - since this permits a lower tax rate at other points in the distribution without defeating equity objectives. At the same time, economic theory has yet to seriously analyse the diversity of social goals in this area. Different social evaluations of the value of ‘leisure’ may have important implications for policy. en_US
dc.identifier.isbn 0733405924 en_US
dc.identifier.issn 1447-8978 en_US
dc.language English
dc.language.iso EN en_US
dc.publisher Social Policy Research Centre, UNSW en_US
dc.relation.ispartofseries SPRC Discussion Paper en_US
dc.rights CC BY-NC-ND 3.0 en_US
dc.rights.uri en_US
dc.source Legacy MARC en_US
dc.title Tax Theory and Targeting: A Survey en_US
dc.type Working Paper en
dcterms.accessRights open access
dspace.entity.type Publication en_US
unsw.identifier.doi Sydney en_US
unsw.relation.faculty Arts Design & Architecture
unsw.relation.ispartofworkingpapernumber 100 en_US
unsw.relation.originalPublicationAffiliation Bradbury, Bruce, Social Policy Research Centre, Faculty of Arts & Social Sciences, UNSW en_US Social Policy Research Centre *
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