Pierre Boyer: Politically Feasible Reforms of non-linear Tax Systems
OFS seminar. Pierre Boyer is an assistant professor at the University of Paris-Saclay, École Polytechnique, CREST, in France.
Pierre Boyer will present the paper «Politically Feasible Reforms of non-linear Tax Systems», written jointly with Felix Bierbrauer.
We develop a framework that allows us to study the political economy and the welfare-implications of tax reforms. Given a predetermined non-linear income tax schedule we characterize a set of reforms that are preferred by a majority of voters and a set of welfare-improving reforms. We clarify the conditions under which there exist reforms that belong to both sets. We call such reforms welfare-improving and politically feasible. We also characterize conditions under which welfare-improvements are politically infeasible and conditions under which politically feasible reforms are detrimental for welfare.