Artikel

Income tax progressivity, growth, income inequality and welfare

This paper analyzes the effects of personal income tax progressivity on long-run economic growth, income inequality and social welfare. The quantitative implications of income tax progressivity increments are illustrated for the US economy under three main headings: individual effects (reduced labor supply and savings, and increased dispersion of tax rates); aggregate effects (lower GDP growth and lower income inequality); and welfare effects (lower dispersion of consumption across individuals and higher leisure levels, but also lower growth of future consumption). The social discount factor proves to be crucial for this third effect: a higher valuation of future generations' well-being requires a lower level of progressivity. Additionally, if tax revenues are used to provide a public good rather than just being discarded, a higher private valuation of such public goods will also call for a lower level of progressivity.

Sprache
Englisch

Erschienen in
Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 6 ; Year: 2015 ; Issue: 1 ; Pages: 43-72 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Taxation, Subsidies, and Revenue: General
One, Two, and Multisector Growth Models
Thema
Growth
Income tax progressivity
Income inequality
Welfare

Ereignis
Geistige Schöpfung
(wer)
Echevarría, Cruz A.
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2015

DOI
doi:10.1007/s13209-014-0119-5
Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Echevarría, Cruz A.
  • Springer

Entstanden

  • 2015

Ähnliche Objekte (12)