The impact of inflation on income tax and social insurance contributions in Europe
AbstractInflation can alter the characteristics of tax- and contribution systems in numerous ways. This paper demonstrates how inflation alters the distributive properties of nominally defined tax systems and looks at the impact of the tax revenues and social insurance contribution receipts generated. It provides quantitative estimates for Germany, The Netherlands and the UK, using a preliminary version of EUROMOD, a European tax-benefit microsimulation model. The integrated framework provided by the model permits the use of common income concepts across countries and therefore enables one to make informative comparisons of the distributive consequences of the inflation induced erosion of tax- band limits, thresholds, deductions, tax credits, etc. The paper also tests the performance of automatic indexing regimes used in two of the countries.
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Bibliographic InfoPaper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number EM2/00.
Date of creation: 01 May 2000
Date of revision:
Publication status: published
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Other versions of this item:
- Herwig Immervoll, 2003. "The Impact of Inflation on Income Tax and Social Insurance Contributions in Europe," Public Economics 0302004, EconWPA.
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
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- Beier, David, 2009. "Regionale Effekte der Einkommensteuerreform," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Öffentliche Finanzströme und räumliche Entwicklung, pages 49-74 Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften.
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