Redistributive Effects of the Taxation of Couples and Families: A Microsimulation Study of Income Tax[Effets redistributifs de l’imposition des couples et des familles : une étude par microsimulation de l’impôt sur le revenu]

This study examines the budgetary and redistributive effects of marital and family income taxation in France. On the basis of the I nes microsimulation model, it proposes a complete methodology for individualising incomes and the various tax schemes targeting couples and families. By comparing income tax in 2017 with a fictitious situation in which it would have been applied on an individual basis, the effects of marital and family taxation are seen to be significant and overwhelmingly beneficial: 13 million households gain, benefiting from a total of 27.7 billion euros. 1.1 million households lose out, primarily those for which marital taxation is not offset by the gains from family taxation. 40% of the total effect is due to marital taxation and 60% is due to family taxation. The wealthiest 15% of people are those who benefit the most from marital taxation (48% of the gains, compared with less than 25% for the poorest 50%).