The optimal exemption
This paper uses simulations to find the optimal tax rate and exemption under a flat-rate income tax. Hall and Rabushka, Lindsey, and recently presidential candidate Jerry Brown have argued that the current income tax system should be replaced by a flat tax with a low rate and a modest exemption. This paper shows that assuming a low rate and exemption to be optimal generally is unwarranted. In addition this flat tax is compared to the linear income tax.
Moreland, K. W. (1992). The optimal exemption. National Tax Journal, 45(4), 421–431.