taxationNegro, Perri and Schivardi published a paper for the New York Fedin 2010 suggesting tax buyouts. The idea is simple: At the beginning of each year, taxpayers settle their debt with the IRS for a fixed value and whatever they make extra is theirs to keep, so the marginal tax rate is in effect 0%.
That first link is a working paper: it’s also available as a policy paper, and as an easier-to-read magazine article, each from the Minneapolis Fed. (though all three versions are by the same authors)
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