Tax Policy to Minimize the Gini Index with Given Tax Revenue

Countdown
0 days

Important Dates

Conference:

Apr. 22-24, 2019

Full Paper Due: Mar. 18, 2019

Abstract Due: Mar. 18, 2019

Audience Registration Due:
Apr. 22, 2019

Presentations of The Spring World Congress on Engineering and Technology (SCET 2017)

● Tax Policy to Minimize the Gini Index with Given Tax Revenue
Author(s)
Libin Mou
Affiliation(s)
Bradley University
KEYWORDS
Tax Policy, Gini Index Given Tax Revenue
ABSTRACT
The Gini index is a number that measures the inequity in the distribution of income (or other attributes) in a population. A smaller Gini index means less inequity. Consider the class T of the tax policies that satisfy (1) the tax rate for low incomes has an upper bound, (2) the tax rate for high incomes has a lower bound, (3) the rate of change of tax for middle incomes has an upper bound, and (4) the tax revenue for the government is given. We prove that there is a tax policy in T that minimizes the Gini index of after-tax incomes and present the approximation and some properties of the tax policy.