Income Tax and Top Incomes over the Twentieth Century
The first section of the paper gives a stylised account of the development of the UK income tax structure over the past 200 years, and refers to recent changes in other OECD countries. The second section turns to the distribution of income and summarises the evidence about the top of the income distribution that can be derived from the income tax data. The main results relate to the UK, but comparisons are made with similar evidence for Canada, France, the Netherlands, and the US. The third part of the paper considers the explanation of the observed changes in the distribution and the impact of progressive income taxation. How far are changes in income shares a reflection of the re-arrangement of income? How far are they associated with changes in the composition of top incomes? Conclusions about distributional incidence have to be based on modelling the determination of the personal income distribution, but such modelling is not typically treated in public finance textbooks. The fourth section of the paper considers how the analysis of distributional incidence can be developed, paying specific attention to the explanation of the upper tail of the distribution
Volume (Year): 168 (2004)
Issue (Month): 1 (march)
|Contact details of provider:|| Postal: Avda. Cardenal Herrera Oria, 378, 28035 Madrid|
Web page: http://www.ief.es
More information through EDIRC
References listed on IDEAS
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.:
- Lazear, Edward P & Rosen, Sherwin, 1981.
"Rank-Order Tournaments as Optimum Labor Contracts,"
Journal of Political Economy,
University of Chicago Press, vol. 89(5), pages 841-864, October.
- Edward P. Lazear & Sherwin Rosen, 1979. "Rank-Order Tournaments as Optimum Labor Contracts," NBER Working Papers 0401, National Bureau of Economic Research, Inc.
- Stiglitz, Joseph E, 1969. "Distribution of Income and Wealth among Individuals," Econometrica, Econometric Society, vol. 37(3), pages 382-397, July.
- Joseph E. Stiglitz, 1967. "Distribution of Income and Wealth Among Individuals," Cowles Foundation Discussion Papers 238, Cowles Foundation for Research in Economics, Yale University.
- Agell, Jonas & Englund, Peter & Sodersten, Jan, 1996. "Tax Reform of the Century -- the Swedish Experiment," National Tax Journal, National Tax Association, vol. 49(4), pages 643-664, December.
- Agell, J & Englund, P & Sodersten, J, 1996. "Tax reform of the Century - the Swedish Experiment," Papers 1996-13, Uppsala - Working Paper Series.
- Agell, Jonas & Englund, Peter & Södersten, Jan, 1996. "Tax Reform of the Century - The Swedish Experiment," Working Paper Series 1996:13, Uppsala University, Department of Economics.
- Pechman, Joseph A, 1987. "Tax Reform: Theory and Practice," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 11-28, Summer.
- Roger H. Gordon & Joel Slemrod, 1998. "Are "Real" Responses to Taxes Simply Income Shifting Between Corporate and Personal Tax Bases?," NBER Working Papers 6576, National Bureau of Economic Research, Inc.
- Musgrave, Richard A, 1987. "Short of Euphoria," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 59-71, Summer.
- A. B. Atkinson & S. Voitchovsky, 2011. "The Distribution of Top Earnings in the UK since the Second World War," Economica, London School of Economics and Political Science, vol. 78(311), pages 440-459, 07.
- Anthony B. Atkinson & Wiemer Salverda, 2005. "Top Incomes In The Netherlands And The United Kingdom Over The 20th Century," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 883-913, 06. Full references (including those not matched with items on IDEAS)