IDEAS home Printed from https://ideas.repec.org/a/dug/journl/y2011i30p15-27.html

Considerations Regarding the Role of Taxes in Correcting the Economical and Social Inequalities on the Base of Globalization Process

Author

Listed:
  • Elena SUMAN (TOMA)

    (1"Alexandru I. Cuza" University of Iasi, Faculty of Economics and Business Administration)

  • Marius Frunza

    (1"Alexandru I. Cuza" University of Iasi, Faculty of Economics and Business Administration)

Abstract

Our paper suggests, on one hand, a theoretical debate on the justification for state intervention to correct inequalities between members of society (especially on income and wealth) and on the instruments at its disposal to achieve this and their effectiveness in objective. Secondly, our approach aims at a comparative analysis of key indicators to measure the degree of inequality, in a representative number of EU countries and beyond, in the last four decades. Thirdly, but not last, we made a trip on the evolutionary changes and their impact in fiscal plan, to identify the degree in which the taxes, in comparison with other available public tools, succeed to achieve the goal of a more just distribution of income and wealth in society. We find that including for a more just income distribution, in EU, the old member States are grouped in accordance with existing social models, while new member States have migrated in the last decades among groups, in consequence of their transition to market economy. Moreover, our results represent a basis for further and detailed research, at country level, in order to identify particular instruments and their efficiency in correcting economical and social inequalities.

Suggested Citation

  • Elena SUMAN (TOMA) & Marius Frunza, 2011. "Considerations Regarding the Role of Taxes in Correcting the Economical and Social Inequalities on the Base of Globalization Process," EuroEconomica, Danubius University of Galati, issue 30, pages 15-27, November.
    • Handle: RePEc:dug:journl:y:2011:i:30:p:15-27
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/1029/890
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Lei, 2008. "Political economy of income distribution dynamics," Journal of Development Economics, Elsevier, vol. 87(1), pages 119-139, August.
    2. Davies, James B. & Sandstrom, Susanna & Shorrocks, Anthony & Wolff, Edward N., 2006. "The World Distribution of Household Wealth," Conference papers 331490, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Emmanuel Saez, 2002. "Optimal Income Transfer Programs: Intensive versus Extensive Labor Supply Responses," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 1039-1073.
    4. Koen Caminada & Chen Wang, 2011. "Disentangling Income Inequality and the Redistributive Effect of Social Transfers and Taxes in 36 LIS Countries," LIS Working papers 567, LIS Cross-National Data Center in Luxembourg.
    5. Olivier Bargain & Mathias Dolls & Dirk Neumann & Andreas Peichl & Sebastian Siegloch, 2011. "Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency," CESifo Working Paper Series 3534, CESifo.
    6. Joel Slemrod & Wojciech Kopczuk, 2000. "The Impact of the Estate Tax on the Wealth Accumulation and Avoidance Behavior of Donors," NBER Working Papers 7960, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olivier Bargain & Claire Keane, 2010. "Tax–Benefit‐revealed Redistributive Preferences Over Time: Ireland 1987–2005," LABOUR, CEIS, vol. 24(s1), pages 141-167, December.
    2. Ángeles Sánchez & Antonio L. Pérez-Corral, 2018. "Government Social Expenditure and Income Inequalities in the European Union," Hacienda Pública Española / Review of Public Economics, IEF, vol. 227(4), pages 133-156, December.
    3. José Mª Durán Cabré & Alejandro Esteller Moré, 2007. "An empirical analysis of wealth taxation: Equity Vs.tax compliance," Working Papers XREAP2007-03, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2007.
    4. Blumkin, Tomer & Sadka, Efraim & Shem-Tov, Yotam, 2011. "Labor Migration and the Case for Flat Tax," Foerder Institute for Economic Research Working Papers 275759, Tel-Aviv University > Foerder Institute for Economic Research.
    5. Stefanie Stantcheva, 2020. "Dynamic Taxation," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 801-831, August.
    6. Gizem Kosar & Robert A. Moffitt, 2017. "Trends in Cumulative Marginal Tax Rates Facing Low-Income Families, 1997-2007," Tax Policy and the Economy, University of Chicago Press, vol. 31(1), pages 43-70.
    7. Dmitri Romanov & Noam Zussman, 2004. "Income Maintenance Allowancesin Israel—Ideal Vs. Actual," Israel Economic Review, Bank of Israel, vol. 2(1), pages 69-90.
    8. Fochesato, Mattia & Bowles, Samuel, 2015. "Nordic exceptionalism? Social democratic egalitarianism in world-historic perspective," Journal of Public Economics, Elsevier, vol. 127(C), pages 30-44.
    9. Nicola Pavoni & G. L. Violante, 2007. "Optimal Welfare-to-Work Programs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 74(1), pages 283-318.
    10. Cahuc, Pierre & Zylberberg, André, 2008. "Optimum income taxation and layoff taxes," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2003-2019, October.
    11. Deniz Sevinc & Edgar Mata Flores & Simon Collinson, 2020. "Are there inequality spillovers? Evidence through a modified inequality measure and European dynamics of inequality," Working Papers 545, ECINEQ, Society for the Study of Economic Inequality.
    12. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    13. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    14. Tomer Blumkin & Efraim Sadka, 2001. "Estate Taxation," CESifo Working Paper Series 558, CESifo.
    15. Yuan, Cheng & Zhang, Lei, 2015. "Public education spending and private substitution in urban China," Journal of Development Economics, Elsevier, vol. 115(C), pages 124-139.
    16. Ugo Colombino & Nizamul Islam, 2021. "Combining microsimulation and optimization to identify optimal universalistic tax-transfer rule," LISER Working Paper Series 2021-06, Luxembourg Institute of Socio-Economic Research (LISER).
    17. Chinedu Miracle Nevo & Stanley Egenti, 2019. "A Disaggregated Analysis of Wealth Status and Educational Attainment in Nigeria Using the Multinomial Logit Approach," Economies, MDPI, vol. 7(2), pages 1-9, May.
    18. Bargain, Olivier & Orsini, Kristian, 2006. "In-work policies in Europe: Killing two birds with one stone?," Labour Economics, Elsevier, vol. 13(6), pages 667-697, December.
    19. Christian Keuschnigg, 2008. "Corporate Taxation and the Welfare State," Working Papers 0813, Oxford University Centre for Business Taxation.
    20. Charles Gottlieb & Maren Froemel, 2015. "General Equilibrium Effects of Targeted Transfers: The case of EITC," 2015 Meeting Papers 1264, Society for Economic Dynamics.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:journl:y:2011:i:30:p:15-27. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.