TY - JOUR
T1 - A case for taxing education
AU - Blumkin, Tomer
AU - Sadka, Efraim
PY - 2008/4
Y1 - 2008/4
N2 - In this paper we establish, contrary to conventional wisdom, a case for taxing education, as a supplement to the labor income tax, by drawing on some informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the informational constraint faced by the government.
AB - In this paper we establish, contrary to conventional wisdom, a case for taxing education, as a supplement to the labor income tax, by drawing on some informational feature of education, which the government may utilize. Discretionary decisions of individuals to acquire education may serve as an additional signal (to earned labor income) on the underlying unobserved innate earning ability, thereby mitigating the informational constraint faced by the government.
KW - Education
KW - Inequality
KW - Optimal taxation
KW - Re-distribution
UR - http://www.scopus.com/inward/record.url?scp=38949186407&partnerID=8YFLogxK
U2 - 10.1007/s10797-006-9003-y
DO - 10.1007/s10797-006-9003-y
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AN - SCOPUS:38949186407
SN - 0927-5940
VL - 15
SP - 145
EP - 163
JO - International Tax and Public Finance
JF - International Tax and Public Finance
IS - 2
ER -
