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Une analyse des taux marginaux effectifs d’imposition au Québec

Author

Listed:
  • Duclos, Jean-Yves

    (Département d’économique, Université Laval, CIRPÉE)

  • Fortin, Bernard

    (Département d’économique, Université Laval, CIRPÉE, CIRANO, Chaire du Canada en économie des politiques sociales et des ressources humaines)

  • Fournier, Andrée-Anne

    (Groupe d’analyse ltée)

Abstract

This article draws up a portrait of effective marginal tax rates (EMTRs) on labour income in Quebec. It aims in part to provide a better understanding of the impact of tax policy on the labour market and saving behavior of agents. Using an accounting micro-simulation model that incorporates the system of taxes and transfers in 2002 Quebec, we measure the EMTRs that result from the interaction of the mechanisms of income taxation and redistribution. Moreover, we evaluate the distribution of EMTRs in the population. The analysis of EMTRs shows, inter alia, that family policy, whose assistance is targeted towards low to medium income families, generates high levels of EMTRs ascribable to the generally rapid reduction of transfers as income increases. More than a quarter of the heads of single-parent households face an EMTR that can reach, and even exceed, 80%. As for the two-parent families, they mostly face EMTRs of around 50%. We finally show the importance of accounting for EMTR heterogeneity, both with respect to family types and income levels, in order to assess properly the variability of EMTRs in the population. Cet article dresse un portrait de la situation des taux marginaux effectifs d’imposition (TMEI) sur le revenu de travail au Québec. Il vise à permettre une meilleure compréhension de l’impact des politiques gouvernementales sur le comportement des agents économiques sur le marché de la main-d’oeuvre. À l’aide d’un modèle de microsimulation comptable reproduisant les systèmes d’impôts et de transferts au Québec pour 2002, nous mesurons les TMEI qui résultent de l’interaction des mécanismes de perception et de redistribution. En outre, nous en évaluons la répartition au sein de la population. L’analyse de ces taux démontre, entre autres, que la politique familiale du gouvernement, dont l’aide est ciblée vers les familles à faible revenu, engendre des TMEI élevés attribuables à la réduction généralement rapide des transferts avec le revenu de travail Ainsi, plus du quart des chefs de famille monoparentale ont un TMEI pouvant atteindre, et même excéder, 80 %. Quant aux familles biparentales, elles font majoritairement face à un TMEI qui approche 50 %. Nous montrons l’importance de tenir compte de l’hétérogénéité, à la fois selon les types de familles et selon les niveaux de revenu, de manière à bien évaluer la variabilité des TMEI à travers la population.

Suggested Citation

  • Duclos, Jean-Yves & Fortin, Bernard & Fournier, Andrée-Anne, 2008. "Une analyse des taux marginaux effectifs d’imposition au Québec," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(1), pages 5-46, mars.
    • Handle: RePEc:ris:actuec:v:84:y:2008:i:1:p:5-46
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    References listed on IDEAS

    as
    1. Fortin, Bernard & Lacroix, Guy, 1994. "Labour supply, tax evasion and the marginal cost of public funds an empirical investigation," Journal of Public Economics, Elsevier, vol. 55(3), pages 407-431, November.
    2. Browning, Edgar K, 1976. "The Marginal Cost of Public Funds," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 283-298, April.
    3. Dany Brouillette & Bernard Fortin, 2008. "Impact de la Prime au travail sur l'effort au travail : une approche expérimentale," CIRANO Project Reports 2008rp-01, CIRANO.
    4. Guy Laroque & Bernard Salanié, 1999. "Prélèvements et transferts sociaux : une analyse descriptive des incitations financières au travail," Économie et Statistique, Programme National Persée, vol. 328(1), pages 3-19.
    5. Duclos, Jean-Yves & Fortin, Bernard & Fournier, Andrée-Anne, 2008. "Une analyse des taux marginaux effectifs d’imposition au Québec," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(1), pages 5-46, mars.
    6. Dahlby, Bev, 1998. "Progressive taxation and the social marginal cost of public funds," Journal of Public Economics, Elsevier, vol. 67(1), pages 105-122, January.
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    Cited by:

    1. Marianne Laurin & Derek Messacar & Pierre-Carl Michaud, 2021. "Financial Literacy and the Timing of Tax-Preferred Savings Account Withdrawals," CIRANO Working Papers 2021s-36, CIRANO.
    2. Duclos, Jean-Yves & Fortin, Bernard & Fournier, Andrée-Anne, 2008. "Une analyse des taux marginaux effectifs d’imposition au Québec," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(1), pages 5-46, mars.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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