Taxes and Pensions
Name
Diamond_Taxes and.pdf
Size
235.77 KB
Format
Adobe PDF
Checksum (MD5)
9727e23d7b4170671c88c377303c7f02
Author(s)
Diamond, Peter A.
Date Issued
July 2009
Journal
Southern Economic Journal
Publisher
Southern Economic Association
Citation
Diamond, Peter. "Taxes and Pensions." Southern Economic Journal (2009) 76:1 p.2-15.
Version
Author's final manuscript
Abstract
Pension benefit rules depend on individual history far more than taxes do, and age plays a much larger role in pension determination than in tax determination. Apart from some simulation studies, theoretical studies of optimal tax design typically contain neither a mandatory pension system nor the behavioral dimensions that lie behind justifications commonly offered for mandatory pensions. Conversely, optimizing models of pension design typically do not include annual taxation of labor and capital incomes. After spelling out this contrast and reviewing (and rejecting) zero taxation of capital income based on the Atkinson- Stiglitz and Chamley-Judd results, this article raises the issue of tax-favored retirement savings, a topic where the two subjects come together.
Description
journal website
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Attribution-Noncommercial-Share Alike 3.0 Unported
Persistent DSpace Link
DOI of Published Version
http://ideas.repec.org/s/sej/ancoec.html
