Income Redistribution Via Taxes And Transfers

The following sections are included:Introduction and SummaryMain FindingsThe redistributive impact of taxes and transfersIndicators of tax and transfer policies help in identifyingreform options and different country modelsThe Redistributive Impact of Taxes and TransfersThe Redistributive Impact of Cash Transfers: Cross-country Differences and Driving ForcesThe redistributive impact of cash transfers is large but variesa lot across countriesThe redistributive impact of pension systems dependson their designDisability benefits are redistributive but risk creatingpoverty trapsUnemployment benefits are mostly insurance-based and thusnot very progressiveFamily cash benefits are targeted toward low-income groupsThe Redistributive Impact of Taxes: Cross-country Differences and Driving ForcesRedistribution via household taxes as gauged by householdsurveysGoing beyond household surveys when assessingthe redistributive impact of taxesLabor income taxes: progressivity indicators based on statutorytax schedulesDespite cuts in top marginal rates, labor taxes have oftenbecome more progressiveThe progressivity of the personal income tax is often hollowedout by tax expendituresTaxes on capital income have been reduced and are often lowerthan taxes on labor incomeProperty taxes play a minor role in many OECD countriesReal estate taxes are regressive in some countriesWealth, inheritance, and gift taxes have been reduced in manycountriesConsumption taxes tend to be regressiveA Limitation of the Analysis: The Incidence of Taxes and TransfersTax and Cash Transfer Policy Indicators Help Identify Reform Options and Types of Welfare SystemsA Set of Policy Indicators on Taxes and Cash TransfersIn Australia, taxes and transfers are smallerbut more progressive than the OECD averageIn Germany, taxes and transfers are larger but less progressivethan the OECD averageFive Tax and Transfer Systems Can Be IdentifiedReferences