La composizione familiare e lï¿½imposta sul reddito delle persone fisiche: unï¿½analisi degli effetti redistributivi e alcune considerazioni sul benessere sociale
The paper provides an evaluation of the redistribution effects stemming from the changes to the personal income tax introduced in the last decade. The analysis confirms that between 1989 and 2001 the net average tax rate increased for all taxpayers and, above all, for one-earner couples. The reason is twofold: a) the progressivity of the tax makes larger the burden on these households of changes in income brackets and tax rates; b) the absence of dependent relatives does not allow the compensation of higher taxes with increased tax credits. However, these higher taxes are associated with a distribution of the tax burden that favours low income households with a high number of components, thanks to changes in tax credits. Concerning welfare effects, the results of the analysis are controversial. The net income distribution in 2001 dominates in Lorenz sense that of 1989 if the entire population is considered, if one-earner or two-earner households are separately taken into account, if the population is decomposed on the basis of the number of components in the family. The generalised Lorenz curves show that all one-earner and two-earner households in the lowest part of the income distribution have benefited from the changes in Irpef. The sequential stochastic dominance allows verifying that social welfare has increased for all one-earner households but the singles and has diminished for two-earner households.
|Date of creation:||Jun 2003|
|Contact details of provider:|| Postal: Via Nazionale, 91 - 00184 Roma|
Web page: http://www.bancaditalia.it
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bdi:wptemi:td_477_03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.