Personal and household income taxation in a progressive tax system: evidence from Italy
AbstractI compare personal and household income taxation and study the effects of tax progression under the two systems. Potential reforms of the Italian tax system are simulated, endogenizing labor supply reactions. Results show that, with respect to a number of indicators, the choice of the tax unit is more relevant than the degree of progression of the tax schedule. A personal and progressive tax system provides incentives to female labor supply and turns out to be the most effective in redistributing income and raising revenue, with little productive costs compared with a flat tax rate. Household taxation has instead a number of drawbacks when coupled with a progressive tax schedule.
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Bibliographic InfoPaper provided by London School of Economics and Political Science in its series Open Access publications from London School of Economics and Political Science with number http://eprints.lse.ac.uk/3242/.
Date of creation: 24 Jan 2005
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Publication status: Published in Economics bulletin (2005-01-24) v.8, p.1-9
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Web page: http://www.lse.ac.uk
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- Valentino Larcinese, 2005. "Personal And Household Income Taxation In A Progressive Tax System: Evidence From Italy," Economics Bulletin, AccessEcon, vol. 8(1), pages 1-9.
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- Daniela Sonedda & Gilberto Turati, 2005. "Winners and Losers in the Italian Welfare State: A Microsimulation Analysis of Income Redistribution Considering In-Kind Transfers," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 423-464, December.
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