A Simplified Version of the Mirrlees Optimal Taxation Model
5 Pages Posted: 3 Aug 2011 Last revised: 5 Aug 2011
Date Written: August 1, 2011
Income tax is one of the most important fiscal tools and Mirrlees suggested taxing people according to their ability. This paper proves that the Mirrlees suggestions are inoperative, subjective or contradictory.
Keywords: Income Tax, Compensation Principle
JEL Classification: H21, H24
Suggested Citation: Suggested Citation