Business communication : building critical skills / Kitty O. Locker, Stephen Kyo Kaczmarek.

Includes bibliographical references and index.

I The Effects of Taxation 13

1 Tax Incidence 15
1.1 Partial Equilibrium 16
1.1.1 The Effect of Payroll Taxes 16
1.1.2 The General Analysis of Partial Equilibrium 19
1.2 General Equilibrium 23
1.2.1 The No-Taxation Economy 23
1.2.2 Introducing Taxes 24
1.2.3 General Remarks 26
1.2.4 Infinitesimal Analysis 27
1.2.5 Final Remarks 33

2 Distortions and Welfare Losses 35
2.1 The Effects of Taxation 38
2.1.1 Labor Supply 38
2.1.2 The Effects of Taxation on Savings 45
2.1.3 Taxation and Risk-Taking 49
2.2 Welfare Losses 52
2.3 Conclusion 57

II Optimal Taxation 59

3 Indirect Taxation 63
3.1 Ramsey's Formula 63
3.1.1 An Informal Approach 63
3.1.2 The General Model 64





3.1.3 Some Special Cases 69
3.2 Productive Efficiency 73

4 Direct Taxation 79
4.1 The Emergence of the Model 79
4.2 Mirrlees's Model 83
4.2.1 The Rawlsian Case 84
4.2.2 The General Approach 87
4.2.3 The Quasi-linear Case 91
4.3 Generalizations 96
4.4 Simulations 103

5 Mixed Taxation 111
5.1 The Negative Income Tax 111
5.2 Is Indirect Taxation Useful? 113
5.3 Criticisms 117

6 The Taxation of Capital 121
6.1 Applying Classical Results 123
6.2 The Overlapping Generations Model 124
6.3 The Zero Capital Taxation Result 126
6.4 Capital Accumulation 129
6.5 Capital Taxation with an Infinite Horizon 137
6.6 The Incidence of Capital Taxation 141
6.7 Conclusion 142

7 Criticisms of Optimal Taxation 147
7.1 Horizontal Equity 149
7.2 Tax Reforms 152
7.3 Administrative and Political Issues 155

III Some Current Debates 159

8 Low-Income Support 161
8.1 Measuring Poverty 162
8.2 Private Charity and Public Transfers 163
8.3 The Main Benefits 166
8.3.1 Guaranteed Minimum Income 167
8.3.2 The Negative Income Tax 168
8.3.3 Low-Wage Subsidies 168
8.3.4 The Minimum Wage 170




8.4 The Lessons from Theory 171
8.4.1 The Negative Income Tax 171
8.4.2 Low-Wage Subsidies 176
8.4.3 The Guaranteed Minimum Income 179
8.4.4 The Minimum Wage 179
8.5 Empirical Evaluations 181
8.6 Recent Reforms 184

9 The Consumption Tax 187
9.1 Equivalences between Taxes 187
9.2 The Comprehensive Income Tax 188
9.3 The Consumption Tax in Practice 190

10 Environmental Taxation 193
10.1 Optimal Green Taxes 196
10.1.1 The First-Best Case 196
10.1.2 The Second-Best Case 198
10.2 Is There a Double Dividend? 200

Business Communication: Building Critical Skills by Locker and Kaczmarek represents a unique approach to a hands-on course. Written by the same author of Business and Administrative Communication, this completely new approach is devised and created with the assistance of a community college colleague. The innovative modular structure allows instructors to focus on specific skills and provides greater flexibility for short courses and different teaching approaches. While grounded in solid business communication fundamentals, this four-color paperback takes a strong workplace activity orientation which helps students connect what they learn to what they do or will do on the job