Alex Tabarrok says he wants to move to Switzerland to take advantage of the low taxes and the declining marginal income tax rates. (Declining as a function of income, that is.)

He may want to reconsider, after the xenophobic Swiss People’s Party gained 11 seats in the recent Parlimentary elections, making them the largest bloc in the governing coalition.

On the subject of marginal tax rates, could one of the econo-bloggers perhaps explain the argument in this paper that declining marginal rates are a property of “optimal tax systems“? The paper completely lost me, so you’ll need to explain it in short words that a mere philosopher turned computer geek would understand.

I’m willing to reconsider my view that an income tax with increasing marginal rates strikes the best balance between fairness and minimizing economic disincentives.