Unequal inequalities: Do progressive taxes reduce income inequality?

Arbeitspapier

This paper analyzes the effect of changes in structural progressivity of national income tax systems on observed and actual income inequality. Using several unique measures of progressivity over the 1981-2005 period for a large panel of countries, we find that progressivity reduces inequality in observed income, but has a significantly smaller impact on actual inequality, approximated by consumption-based GINIs. We show empirically that the differential effect on observed vs. actual inequality is much larger in countries with weaker legal institutions. Substantial differences in inequality response to changes in top vs. bottom rates are also uncovered. The paper discusses implications of these results for flat tax policies.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 6910

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: income inequality ; Gini ; personal income tax ; structural progressivity ; tax evasion ; Steuerprogression ; Einkommensverteilung ; Einkommensteuer ; Steuerkriminalität ; Schätzung ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Duncan, Denvil ; Sabirianova Peter, Klara
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2012

Weitere Informationen

• Handle: http://hdl.handle.net/10419/67217
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ