Welfare Effects of Proportional Taxation: Empirical Evidence from Italy, Norway and Sweden
AbstractThis paper employs a particular labor supply model to examine the welfare effects from replacing current tax systems in Italy, Norway and Sweden by proportional taxation on labor income. The results show that there are high efficiency costs for Norway and low costs for Italy and Sweden associated with the current progressive labor income taxes. However, there appears to be large variation in the distribution of welfare gains/losses. "Rich" households – defined by their pre-tax-reform income – tend to benefit more than "poor" households from replacing the current progressive tax systems by proportional taxation.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 171.
Date of creation: Apr 1996
Date of revision:
Labor supply; taxation; distribution of income and welfare.;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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- José M. Labeaga & Xisco Oliver & Amadéo Spadaro, 2005.
"Discrete choice models of labour suppluy, behavioural microsimulation and the Spanish tax reform,"
PSE Working Papers
- José Labeaga & Xisco Oliver & Amedeo Spadaro, 2008. "Discrete choice models of labour supply, behavioural microsimulation and the Spanish tax reforms," Journal of Economic Inequality, Springer, vol. 6(3), pages 247-273, September.
- José M. Labeaga, Xisco Oliver & Xisco Oliver & Amedeo Spadaro, . "Discrete choice models of labour Supply, behavioural microsimulation and the Spanish tax reforms," Working Papers 2005-14, FEDEA.
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- Xisco Oliver & Amedeo Spadaro, 2004. "Descripción técnica del modelo de microsimulación del sistema fiscal español “GLADHISPANIA”," DEA Working Papers 7, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- Sverre Grepperud, 1997. "Soil Depletion Choices under Production and Price Uncertainty," Discussion Papers 186, Research Department of Statistics Norway.
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