This book provides a comprehensive survey of optimal income tax theory, following the development of research strategy from the basic Mirrlees model through to its refinements, examining how optimal tax rates and the shape of tax schedules are affected by new considerations. Optimal tax theory has an important contribution to make to tax policy formation, and has become especially pertinent in recent years with the renewal of controversy over whether progressive income tax is in fact desirable or not. The author not only covers the historical background and modern formulations of the theory, but extends his discussion to consider the most important extensions of the model and the interrelation of income tax with other
instruments of tax and expenditure policy.
Readership: Academic economists with an interest in welfare economics and taxation; graduate and advanced undergraduate students on courses in public economics.
Matti Tuomala, Professor of Economics, University of Jyväskylä, Finland
"`the fruits of the endeavour, which goes on, have been both intellecturally rewarding and influential. Tuomala's pleasant little book offers an appreciation of all this, and it comes from one who is himself a significatn contributor. I found his perspective on the development of the subject, and his evaluation of the insights which have been gained, worthwhile reading. The style is lucid, more verbal than mathematical. The book will be found valuable by students of public finance, and by interested economists generally.'
The Economic Journal"
"'it is a valuable overview of themes discussed in modern theory of income taxation, it provides interesting comments and intuition on various problems.'
Johann K. Brunner, Finanz Archiv 1991/1992"