nep-pub New Economics Papers
on Public Finance
Issue of 2008‒03‒01
two papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Effective Taxation of Top Incomes in Germany, 1992 - 2002 By Stefan Bach; Giacomo Corneo; Viktor Steiner
  2. Optimal Taxation in the Forestry Sector in the Congo Basin: The Case of Gabon By Oscar E. Melhado

  1. By: Stefan Bach; Giacomo Corneo; Viktor Steiner
    Abstract: We analyze the taxation of top personal incomes in Germany on the basis of an integrated data file of individual tax returns and a general household survey for the years 1992 - 2002. The unique feature of this integrated data set is that it includes all taxpayers in the top percentile of the gross income distribution. We show that despite substantial tax base erosion and significant reductions of top statutory marginal tax rates, German income taxation has remained effectively progressive. The distribution of the tax burden is highly concentrated, and the effective average income tax rate of the German economic elite - the top 0.001 quantile of the gross income distribution - is about 34 percent, which is well below the legislated tax rate.
    Keywords: Personal Income Tax, Taxing the Rich, Effective Progressivity
    JEL: H24 H26 D31
    Date: 2008
  2. By: Oscar E. Melhado
    Abstract: This paper reviews forestry reform in the Congo basin, focusing on Gabon. It argues that the key challenge for the Congo basin countries is to manage their forests in a sustainable manner. It presents the current situation of forestry taxation and forestry reform in Gabon. The paper analyzes optimal taxation in the forestry sector using a static model. The model works from the proposition that tax policy should be used exclusively for revenue purposes and resource preservation should be achieved mainly through legislation and enforcement. It argues that when prices are uncertain the best practice is to tax only profits.
    Keywords: Forestry , Gabon , Taxation , Economic models ,
    Date: 2007–11–05

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