International Tax and Public Finance

, Volume 17, Issue 3, pp 259–270 | Cite as

On optimal non-linear income taxation: numerical results revisited

  • Matti TuomalaEmail author


We use the standard Mirrlees (Review of Economics Studies 38:175–208, 1971) structure, but replace the utility functions used in previous simulations with a quadratic utility of consumption with a bliss point. This greatly reduces the curvature of the utility function over consumption. Our simulations demonstrate that this would then lead to an increasing marginal tax rate structure over a wide range of wage levels.


Optimal nonlinear tax Numerical simulations 

JEL Classification

H21 D63 


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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of TampereTampereFinland

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