Abstract

The taxation of high-income earners is of importance to every country and is the subject of a considerable amount of recent academic research. Such high-income earners contribute substantial amounts of tax and generate significant positive spillovers, but are also highly mobile: a 1% increase in the top marginal income tax rate increases out-migrations by around 1.5% to 3%. The authors review research into taxation of high-income earners to provide a synthesis of existing theoretical and empirical understanding and offer various avenues for potential future theoretical and empirical research.