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A.Isitpossibleforthemarginaltaxrate(MTR)to be decreasing in income while the average tax rate (ATR) is increasing in income? Explain. [10 marks] B. In the Mirrlees model of optimal
- A.Isitpossibleforthemarginaltaxrate(MTR)to be decreasing in income while the average tax rate (ATR) is increasing in income? Explain. [10 marks]
- B. In the Mirrlees model of optimal income taxation, what should be the MTR of the highest earner in an economy? Explain
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