IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_9277.html
   My bibliography  Save this paper

Social Construction and the Progressivity of Local Tax Relief

Author

Listed:
  • Momi Dahan

Abstract

This paper reveals a noticeable difference between a high degree of progressivity of incomerelated local property tax relief versus the proportional or regressive incidence of recognition tax relief. Recognition tax relief is tax relief given to specified social sectors which recognizes either their contributions to society or their identity-related suffering. Social groups that are characterized by political power and positive image following social construction process are expected to receive more favorable tax treatment regardless of their material needs. This study advances our understanding by showing that the degree of progressiveness of a tax system is shaped by social construction which implies a more complex trade-off between equality, efficiency and social construction in designing the tax system.

Suggested Citation

  • Momi Dahan, 2021. "Social Construction and the Progressivity of Local Tax Relief," CESifo Working Paper Series 9277, CESifo.
    • Handle: RePEc:ces:ceswps:_9277
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9277.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Schneider, Anne & Ingram, Helen, 1993. "Social Construction of Target Populations: Implications for Politics and Policy," American Political Science Review, Cambridge University Press, vol. 87(2), pages 334-347, June.
    2. Richard E. Slitor, 1948. "The Measurement of Progressivity and Built-In Flexibility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 62(2), pages 309-313.
    3. Emmanuel Saez & Benjamin Schoefer & David Seim, 2019. "Payroll Taxes, Firm Behavior, and Rent Sharing: Evidence from a Young Workers' Tax Cut in Sweden," American Economic Review, American Economic Association, vol. 109(5), pages 1717-1763, May.
    4. Yingying Deng & Monica Prasad, 2009. "Taxation and the Worlds of Welfare," LIS Working papers 480, LIS Cross-National Data Center in Luxembourg.
    5. J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(2), pages 175-208.
    6. R. A. Musgrave & Tun Thin, 1948. "Income Tax Progression, 1929-48," Journal of Political Economy, University of Chicago Press, vol. 56, pages 498-498.
    7. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
    8. Kenworthy, Lane, 2013. "Progress for the Poor," OUP Catalogue, Oxford University Press, number 9780199676927, Decembrie.
    9. John Gal, 1998. "Categorical Benefits in Welfare States: Findings from Great Britain and Israel," International Social Security Review, John Wiley & Sons, vol. 51(1), pages 73-101, January.
    10. Justin Tyson, 2014. "Reforming Tax Expenditures in Italy: What, Why, and How?," IMF Working Papers 2014/007, International Monetary Fund.
    11. Emmanuel Saez & Manos Matsaganis & Panos Tsakloglou, 2012. "Earnings Determination and Taxes: Evidence From a Cohort-Based Payroll Tax Reform in Greece," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 493-533.
    12. Kakwani, Nanok C, 1977. "Measurement of Tax Progressivity: An International Comparison," Economic Journal, Royal Economic Society, vol. 87(345), pages 71-80, March.
    13. Emmanuel Saez, 2001. "Using Elasticities to Derive Optimal Income Tax Rates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 205-229.
    14. Michel Strawczynski & Momi Dahan, 2000. "Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates: Comment," American Economic Review, American Economic Association, vol. 90(3), pages 681-686, June.
    15. Soss, Joe, 1999. "Lessons of Welfare: Policy Design, Political Learning, and Political Action," American Political Science Review, Cambridge University Press, vol. 93(2), pages 363-380, June.
    16. Shan, Hui, 2010. "Property taxes and elderly mobility," Journal of Urban Economics, Elsevier, vol. 67(2), pages 194-205, March.
    17. Diamond, Peter A, 1998. "Optimal Income Taxation: An Example with a U-Shaped Pattern of Optimal Marginal Tax Rates," American Economic Review, American Economic Association, vol. 88(1), pages 83-95, March.
    18. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, Taylor & Francis Journals, vol. 47(4), pages 6-16.
    19. Momi Dahan, 2022. "The Effects of Intergovernmental Transfers on Municipalities' Budgets," Israel Economic Review, Bank of Israel, vol. 20(1), pages 1-25.
    20. Wallace E. Oates & William A. Fischel, 2016. "Are Local Property Taxes Regressive, Progressive, or What?," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(2), pages 415-434, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elvire Guillaud & Matthew Olckers & Michaël Zemmour, 2020. "Four Levers of Redistribution: The Impact of Tax and Transfer Systems on Inequality Reduction," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 444-466, June.
    2. Auerbach, Alan J. & Hines, James Jr., 2002. "Taxation and economic efficiency," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 21, pages 1347-1421, Elsevier.
    3. Boadway, Robin & Jacquet, Laurence, 2008. "Optimal marginal and average income taxation under maximin," Journal of Economic Theory, Elsevier, vol. 143(1), pages 425-441, November.
    4. Marko Ledić & Ivica Rubil & Ivica Urban, 2023. "Tax progressivity and social welfare with a continuum of inequality views," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(5), pages 1266-1296, October.
    5. Thomas Piketty & Emmanuel Saez, 2012. "Optimal Labor Income Taxation," NBER Working Papers 18521, National Bureau of Economic Research, Inc.
    6. Louis Kaplow, 2007. "Optimal income transfers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(3), pages 295-325, June.
    7. Lawson, Nicholas, 2019. "Taxing the job creators: Efficient taxation with bargaining in hierarchical firms," Labour Economics, Elsevier, vol. 56(C), pages 1-25.
    8. Mattos, Enlinson, 2008. "The Revealed Social Welfare Function: USA X Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 28(2), November.
    9. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09i8hj22lpn is not listed on IDEAS
    10. Tomer Blumkin & Efraim Sadka & Yotam Shem-Tov, 2015. "International tax competition: zero tax rate at the top re-established," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(5), pages 760-776, October.
    11. Roller, Marcus, 2016. "Effective Tax Rates and Effective Progressivity in a Fiscally Decentralized Country," CEPR Discussion Papers 11152, C.E.P.R. Discussion Papers.
    12. Zsofia Barany, 2011. "Income inequality and the progressivity of taxes in a coalition formation model," SciencePo Working papers Main hal-00972940, HAL.
    13. Louis Kaplow, 2022. "Optimal Income Taxation," NBER Working Papers 30199, National Bureau of Economic Research, Inc.
    14. Zsofia Barany, 2011. "Income inequality and the progressivity of taxes in a coalition formation model," SciencePo Working papers hal-00972940, HAL.
    15. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09i8hj22lpn is not listed on IDEAS
    16. Chung Tran & Nabeeh Zakariyya, 2019. "Tax Progressivity in Australia: Facts, Measurements and Estimates," ANU Working Papers in Economics and Econometrics 2019-667, Australian National University, College of Business and Economics, School of Economics.
    17. Marcus Berliant & Pierre C. Boyer, 2022. "Politics and Income Taxes: Progress and Progressivity," CESifo Working Paper Series 10041, CESifo.
    18. Masaaki Suzuki, 2014. "Debates on Individual Income Tax and Potential Japanese Tax Reforms," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 10(3), pages 371-396, October.
    19. Albert Jan Hummel, 2021. "Monopsony Power, Income Taxation and Welfare," CESifo Working Paper Series 9128, CESifo.
    20. Albert Jan Hummel, 2021. "Monopsony power, income taxation and welfare," Tinbergen Institute Discussion Papers 21-051/VI, Tinbergen Institute.
    21. Oztek, Abdullah Selim, 2013. "Externalities and Optimal Taxation: A Progressive Tax Case," MPRA Paper 104847, University Library of Munich, Germany, revised Sep 2013.
    22. Dingquan Miao, 2022. "Optimal Labor Income Taxation - The Role of the Skill Distribution," LIS Working papers 823, LIS Cross-National Data Center in Luxembourg.

    More about this item

    Keywords

    tax relief; property tax; tax progressivity; social construction;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_9277. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.