ISSN:
1572-9338
Keywords:
Tax reforms
;
progressive taxation
;
risk-taking
;
certainty equivalent approach
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mathematics
,
Economics
Notes:
Abstract There are essentially two alternatives to analyse the impacts of tax reform proposals on risk-taking: the two-asset model and the certainty equivalent approach. Here risk-taking is defined in terms of the certainty equivalent approach. The paper discusses the effects of current tax reform proposals in the Federal Republic of Germany and in the United States with respect to risk-taking. Among others it is shown that there are unambiguous effects of the reform proposals as far as the upper income class is considered. Furthermore, the paper studies some impacts of the transition from the FRG-scheduleT 88 (coming into force at the beginning of 1988) to an intended schedule characterized by a linearly increasing marginal tax rate.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF02283739
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