TY  - JOUR
AU  - Rothschild,Michael
AU  - Moffitt,Robert
TI  - Variable Earnings and Nonlinear Taxation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1163
PY  - 1988
Y2  - 1988
UR  - http://www.nber.org/papers/w1163
L1  - http://www.nber.org/papers/w1163.pdf
N1  - Author contact info:
Michael Rothschild
531 14th Street
Santa Monica, CA 90402
Tel: 310-394-6010
Fax: 310-593-4401
E-Mail: mrothsch@princeton.edu

Robert A. Moffitt
Department of Economics
Johns Hopkins University
3400 North Charles Street
Baltimore, MD  21218
Tel: 410/516-7611
Fax: 410/516-7600
E-Mail: moffitt@jhu.edu
AB  - We explore the interaction between two facts. The first is that income is variable; the second is that the tax and transfer system transforms before tax income into after tax income in highly non-linear ways. The effect is to penalize (and reward) income variability in a manner which is both substantial and capricious.
ER  -