Income and wealth concentration in Spain in a historical and fiscal perspective
This paper presents series on top shares of income and wealth in Spain over the 20th century using personal income and wealth tax return statistics. Top income shares are highest in the 1930s, fall sharply during the first two decades of the Franco dictatorship, and have increased slightly since the 1960s, and especially since the mid-1990s. The top 0.01% income share in Spain estimated from income tax data is comparable to estimates for the United States and France over the period 1933-1971. Those findings, along with a careful analysis of all published tax statistics, suggest that income tax evasion and avoidance among top income earners in Spain before 1980 was much less prevalent than previously thought. Wealth concentration has been about stable from 1982 to 2004 as surging real estate prices have benefited the middle class and compensated for a slight increase in financial wealth concentration in the 1990s. We use our wealth series and a simple conceptual model to analyse the effects of the wealth tax exemption of stocks for ownersmanagers introduced in 1994. We show that the reform induced substantial shifting from the taxable to tax exempt status. This shifting has eroded the wealth tax base substantially and hence the tax exemption has generated large efficiency costs.
|Date of creation:||Nov 2007|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00587714|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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.:
- Prados de la Escosura, Leandro, 2006. "Growth, inequality, and poverty in Spain, 1850-2000: evidence and speculation," IFCS - Working Papers in Economic History.WH wp06-04, Universidad Carlos III de Madrid. Instituto Figuerola.
- Simon Kuznets & Elizabeth Jenks, 1953.
"Shares of Upper Income Groups in Income and Savings,"
National Bureau of Economic Research, Inc, number kuzn53-1, October.
- Simon Kuznets, 1950. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn50-1, October.
- Ruiz-Castillo, Javier, 1998. "A Simplified Model for Social Welfare Analysis: An Application to Spain, 1973-74 to 1980-81," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 123-141, March.
- Ruiz-Castillo, Javier, 1996. "A simplified model for social welfare analysis. An application to Spain, 1973-74 to 1980-81," UC3M Working papers. Economics 10427, Universidad Carlos III de Madrid. Departamento de Economía.
- Ruiz-Castillo, Javier, 1997. "A simplidied model for social welfare analysis : an applications to Spain, 1973-74 to 1980-81," UC3M Working papers. Economics 6026, Universidad Carlos III de Madrid. Departamento de Economía.
- Roger H. Gordon & Joel Slemrod, 1998. "Are "Real" Responses to Taxes Simply Income Shifting Between Corporate and Personal Tax Bases?," NBER Working Papers 6576, National Bureau of Economic Research, Inc.
- Prados De La Escosura, Leandro, 2008. "Inequality, poverty and the Kuznets curve in Spain, 1850–2000," European Review of Economic History, Cambridge University Press, vol. 12(03), pages 287-324, December.
- Prados de la Escosura, Leandro, 2007. "Inequality, poverty, and the Kuznets curve In Spain, 1850-2000," IFCS - Working Papers in Economic History.WH wp07-13, Universidad Carlos III de Madrid. Instituto Figuerola.
- Prados de la Escosura Leandro, 2003. "El progreso económico de España (1850-2000)," Books, Fundacion BBVA / BBVA Foundation, edition 1, number 201136.
- Prados de la Escosura, Leandro, 2006. "Growth and structural change in Spain, 1850-2000," IFCS - Working Papers in Economic History.WH wp06-05, Universidad Carlos III de Madrid. Instituto Figuerola.
- Emmanuel Saez & Michael R. Veall, 2005. "The Evolution of High Incomes in Northern America: Lessons from Canadian Evidence," American Economic Review, American Economic Association, vol. 95(3), pages 831-849, June.
- Martin Feldstein, 1999. "Tax Avoidance And The Deadweight Loss Of The Income Tax," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 674-680, November.
- Martin Feldstein, 1995. "Tax Avoidance and the Deadweight Loss of the Income Tax," NBER Working Papers 5055, National Bureau of Economic Research, Inc.
- Emmanuel Saez, 2001. "Using Elasticities to Derive Optimal Income Tax Rates," Review of Economic Studies, Oxford University Press, vol. 68(1), pages 205-229.
- Emmanuel Saez, 2000. "Using Elasticities to Derive Optimal Income Tax Rates," NBER Working Papers 7628, National Bureau of Economic Research, Inc.
- Juan Mora & Antonia Febrer, 2005. "Wage Distribution In Spain, 1994-1999: An Application Of A Flexible Estimator Of Conditional Distributions," Working Papers. Serie EC 2005-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Coral del Rio & Javier Ruiz-Castillo, 2001. "Accounting for the decline in Spanish household expenditures inequality during the 1980s," Spanish Economic Review, Springer;Spanish Economic Association, vol. 3(3), pages 151-175. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:halshs-00587714. 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: (CCSD)
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.