Personal Income Tax Decentralization, Inequality and Social Welfare
This paper elaborates and evaluates a model for the decentralization of personal income tax which is consistent with the optimal redistribution model proposed by Tresch (2002), within a framework od social welfare à la Atkinson and Bourguignon (1987). Each region applies to its constituents a progressive tax, and the central government establishes a surcharge (or deduction) proportional to the income of individuals, net of the respective regional taxes. Our paper presents the conditions which permit this model to be recommended in terms of the reduction of income inequality and the increases of welfare, in each region and in the country as a whole. The theoretical results are applied to the Spanish IRPF, by the performance of various microsimulation exercises.
|Date of creation:||2004|
|Contact details of provider:|| Postal: c/ Bailén 50. 41001 Sevilla|
Phone: (34) 955 055 210
Fax: (34) 955 055 211
Web page: http://www.centrodeestudiosandaluces.es
More information through EDIRC
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.:
- Cremer, Helmuth & et al, 1996.
"Mobility and Redistribution: A Survey,"
Public Finance = Finances publiques,
, vol. 51(3), pages 325-352.
- CREMER, Helmuth & FOURGEAUD, Virginie & LEITE-MONTEIRO, Manuel & MARCHAND, Maurice, "undated". "Mobility and redistribution: A survey," CORE Discussion Papers RP 1371, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CREMER, Helmuth & FOURGEAUD, Virginie & LEITE MONTEIRO, Manuel & MARCHAND, Maurice, 1995. "Mobility and Redistribution : A Survey," CORE Discussion Papers 1995066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Udo Ebert & Patrick Moyes, 2000. "Adjusting Incomes for Needs: Can One Avoid Equivalence Scales?," Econometric Society World Congress 2000 Contributed Papers 0917, Econometric Society.
- Atkinson, A. B. & Bouguignon, F. & Chiappori, P. A., 1988. "What do we learn about tax reform from international comparisons? France and Britain," European Economic Review, Elsevier, vol. 32(2-3), pages 343-352, March.
- Maria Cubel & Peter Lambert, 2002. "Progression-neutral income tax reforms and horizontal inequity," Journal of Economics, Springer, vol. 9(1), pages 1-8, December.
- Maria Cubel & Peter Lambert, 2002. "Progression-neutral income tax reforms and horizontal inequity," Journal of Economics, Springer, vol. 77(1), pages 1-8, December.
- Moyes, Patrick & Shorrocks, Anthony, 1998. "The impossibility of a progressive tax structure," Journal of Public Economics, Elsevier, vol. 69(1), pages 49-65, July.
- Wellisch,Dietmar, 2000. "Theory of Public Finance in a Federal State," Cambridge Books, Cambridge University Press, number 9780521630351, February.
- Maria Cubel & Peter J. Lambert, 2002. "A Regional Approach to Income Tax Reform," Public Finance Review, , vol. 30(2), pages 124-143, March.
- Fellman, J, 1976. "The Effect of Transformations on Lorenz Curves," Econometrica, Econometric Society, vol. 44(4), pages 823-824, July.
- Nuria Badenes & Julio LÃ³pez-Laborda & Jorge Onrubia & JesÃºs Ruiz-Huerta, 2001. "Simplification and Decentralization of the Income Tax," Public Finance Review, , vol. 29(1), pages 49-60, January.
- Udo Ebert, 2000. "Equivalizing Incomes: A Normative Approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(6), pages 619-640, December.
- Lambert, Peter J, 1993. "Inequality Reduction through the Income Tax," Economica, London School of Economics and Political Science, vol. 60(239), pages 357-365, August.
- Ebert, Udo, 1997. "Social Welfare When Needs Differ: An Axiomatic Approach," Economica, London School of Economics and Political Science, vol. 64(254), pages 233-244, May.
- Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January.
- Udo Ebert & Patrick Moyes, 2002. "Equivalence scales reconsidered," Post-Print hal-00156680, HAL.
- Udo Ebert & Patrick Moyes, 2003. "Equivalence scales reconsidered," Post-Print hal-00156453, HAL.
- Tresch, Richard W. & Tresch, Richard W., 2002. "Public Finance," Elsevier Monographs, Elsevier, edition 2, number 9780126990515.
- Udo Ebert, 1999. "Using equivalent income of equivalent adults to rank income distributions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(2), pages 233-258. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cea:doctra:e2004_17. 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: (Susana Mérida)
If references are entirely missing, you can add them using this form.