Optimal income taxation and tagging
Optimal income taxation and tagging
Chapter 8 examines targeted programmes based not only on income information, as in previous chapters, but that can also use information on characteristics that are immutable, such as age. The large literature on ‘tagging’ shows that group-specific tax and transfer schedules improve welfare over the case where the government is restricted to a single schedule over the whole population. The central assumption of this literature is that the groupings available to the government are given and fixed. The government cannot rearrange these groupings. However, if the implementation of tagging is itself costly, and if the costs are a function of the number and type of grouping available, the question arises: how many and which types of groups should the government choose to tag? This is the question addressed in this chapter.
Keywords: tagging, grouping, targeted programmes, group-specific tax and transfer schedule
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .
