For a Welfare-Oriented Taxation Reform in Italy
AbstractThe Italian system of economic support for those on low incomes and for families is among the least effective in Europe. Its incoherent nature is shown by very large jumps in implicit marginal tax rates (taxation + family benefits). Italy needs a comprehensive reform of the treatment of income for tax and social welfare purposes. This paper proposes a new system of benefits and taxation for Italy based on a discussion of the theoretical properties of different schemes for integrating taxation and family benefits. The proposal combines tax allowance for work, designed to provide incentives to work, a flat rate family benefit and changes in the structure of tax rates which would incorporate the progressivity that is implicit in the current system of family benefits. The proposed system exhibits some of the characteristics of social dividend and negative income tax schemes. A micro-simulation exercise shows that the scheme would produce redistributive effects in favour of middle and low incomes and would lead to significant improvements in poverty and inequality indicators.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.
Volume (Year): 64 (2005)
Issue (Month): 2-3 (November)
Contact details of provider:
Postal: via Sarfatti, 25 - 20136 Milano (Italy)
Web page: http://www.gde.unibocconi.it/
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francesca Gastaldi & Paolo Liberati, 2005. "The Personal Income Tax in Italy: Why Does It Change?," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(2-3), pages 159-188, November.
- James Meade., . "Agathotopia," Hume Papers 16, David Hume Institute.
- Tito Boeri & Andrea Brandolini, 2004.
"The Age of Discontent: Italian Households at the Beginning of the Decade,"
Giornale degli Economisti,
GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(3-4), pages 449-487, December.
- Boeri, Tito & Brandolini, Andrea, 2005. "The Age of Discontent: Italian Households at the Beginning of the Decade," IZA Discussion Papers 1530, Institute for the Study of Labor (IZA).
- repec:rie:review:v:9:y:2004:i:3:n:2 is not listed on IDEAS
- Atkinson Anthony B. & Brandolini Andrea, 2004. "I cambiamenti di lungo periodo nelle diseguaglianze di reddito nei paesi industrializzati," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 389-422.
- Carlo V Fiorio & Francesco D'Amuri, 2005. "Workers' Tax Evasion in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(2-3), pages 247-270, November.
- repec:rie:review:y:2004:v:3:i:2 is not listed on IDEAS
- Massimo Baldini & Daniele Pacifico, 2009.
"The recent reforms of the Italian personal income tax: distributive and efficiency effects,"
Department of Economics
0611, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
- Baldini Massimo & Pacifico Daniele, 2009. "The Recent reforms of the Italian Personal Income Tax: Distributive and Efficiency Effects," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 191-218.
- Massimo Baldini & Daniele Pacifico, 2009. "The recent reforms of the Italian personal income tax: distributive and efficiency effects," Center for the Analysis of Public Policies (CAPP) 0066, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.