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Pandemic and progressivity

Author

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  • Alexander Klemm

    (International Monetary Fund)

  • Paolo Mauro

    (International Monetary Fund)

Abstract

Based on a survey of 2500 US adults, we show that serious illness or job losses caused by the COVID-19 pandemic increase support for temporary progressive levies or structural progressive tax reform, controlling for socioeconomic and demographic characteristics. People who reveal preferences for spending items (more on police, military, border protection; less on education, health, environment) that are associated with communitarian (rather than universalist) moral perspectives show generally weaker support for progressive reforms, but more of them change their views following personal experience. The results are consistent with previous findings that economic upheavals can mold individuals’ views on policy matters.

Suggested Citation

  • Alexander Klemm & Paolo Mauro, 2022. "Pandemic and progressivity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(2), pages 505-535, April.
    • Handle: RePEc:kap:itaxpf:v:29:y:2022:i:2:d:10.1007_s10797-021-09700-2
    DOI: 10.1007/s10797-021-09700-2
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    Cited by:

    1. Céline Azémar & Rodolphe Desbordes & Paolo Melindi‐Ghidi & Jean‐Philippe Nicolaï, 2022. "Winners and losers of the COVID‐19 pandemic: An excess profits tax proposal," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 1016-1038, October.
    2. Javier Olivera & Philippe Kerm, 2022. "Public support for tax policies in COVID-19 times: evidence from Luxembourg," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1395-1418, December.
    3. David Weisstanner, 2022. "COVID-19 and welfare state support: the case of universal basic income [Attitudinal polarization towards the redistributive role of the state in the wake of the COVID-19 crisis]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(1), pages 96-110.

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    More about this item

    Keywords

    Solidarity taxes; Surcharges; Surveys; Attitudes; Progressivity; Tax reform;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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