Horizontal Equity and Progession when Equivalence Scales are not Constant
AbstractHousehold needs must be taken into account when designing an equitable income tax. If the equivalence scale is income dependent it is not transparent how to achieve equity. In this paper we explore the question of horizontal equity and the implications for progression (vertical equity), when the equivalence scale depends on income level. In particular an 'equal progression among equals' criterion is articulated and shown to be achievable along with horizontal equity under specified conditions.
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Other versions of this item:
- Udo Ebert & Peter J. Lambert, 2004. "Horizontal Equity and Progression When Equivalence Scales Are Not Constant," Public Finance Review, , vol. 32(4), pages 426-440, July.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-04-15 (All new papers)
- NEP-LTV-2002-04-03 (Unemployment, Inequality & Poverty)
- NEP-PBE-2002-04-15 (Public Economics)
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.:
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