What makes personal income taxes progressive? The case of Belgium
AbstractIn this paper we investigate the progressivity impact of various components of the Belgian personal income tax system, before and after a major reform of this system. The reform reduced the top tax rates, broadened the tax base and increased tax credits. We show that, contrary to the opinion, commonly expressed in public debates, the reform did not reduce aggregate liability progression of the system and that the rate structure is relatively unimportant in explaining progressivity.
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Bibliographic InfoArticle provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.
Volume (Year): 45 (2002)
Issue (Month): 3 ()
Personal income tax; Tax reform; Progressivity;
Other versions of this item:
- André DECOSTER & Isabel STANDAERT & Christian VALENDUC & Guy VAN CAMP, 2000. "What Makes Personal Income Taxes Progressive? the Case of Belgium," Center for Economic Studies - Discussion papers ces0008, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- André Decoster & Isabelle Standaert & Christian Valenduc & Guy Van Camp, 2000. "What makes Personal Income Taxes progressive? The case of Belgium," Public Economics Working Paper Series ces0008, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
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